The Capital Pub Company (AIM: CPUB) climbed slightly this morning after the London pub owner and operator said in a trading statement that it’s estate of pubs “continue to trade well”.
The trading statement didn’t elaborate much on specific trading, but continued with assurances that the company was “performing to budget” and that it was focused on operating its pubs at the “optimum level” to maximise efficiencies.
Overall, the company said that while it was mindful of the current economic climate, it remained optimistic of further progress in the current year.
Capital Pub was originally an Enterprise Investment Scheme business, raising its first funds in 2001. The company stepped up in size in 2006 when it acquired 10 pubs from Spirit, funding most of the £31m cost through debt.
The shares joined AIM in June 2007 at 165p although no new money was raised at the time. Since then 4 pubs have been bought and 3 have been sold. Capital now has 24 unbranded pubs, mostly in Central London, of which 21 are freehold. Its target market is over 25 years old and weekly sales run at around £15,000, split 80% liquor and 20% food. The high level of beer sales enables the company to get additional discounts and hence better profit margins.
Capital was founded by David Bruce and Clive Watson. Bruce developed both the Firkin and Slug & Lettuce chains. Watson?s background includes Regent Inns, Tup Inns and Tom Hoskins.