Capital Pubs in profits lift
CAPITAL Pub Company yesterday reported a profit surge that could send its price tag up as Fuller, Smith & Turner looks to buy the business.
Fuller made public a £54m bid last week but Capital’s chief executive Clive Watson has steadfastly refused to entertain the offer.
His bargaining hand is now stronger given that in the year to March, Capital saw revenue at its 34 pubs rise 24 per cent to £27m.
Profit jumped 48 per cent to £4.1m, allowing the company to pay a dividend of 2.25p, the first since 2008.
The company specialises in revamping pubs and tapping into London communities, particularly attracting young and well-off pubgoers.
Watson said: “We have a growth strategy and want to continue doing what we are doing. We are the only remaining independent London pub company. London deserves a freehouse operator.”
Watson, who stood to receive £7m for his stock under the Fuller’s offer, said the company was on the hunt for more pubs to buy and is aiming to bring the total to between 45 and 50.
Cenkos Capital broker Ian Berry said in a note: “Pubs represents a unique potential acquisition opportunity for a larger business and in due course it will be acquired by a larger operator.”
He added that Fuller’s bid is “woefully inadequate”.