Capital Pub’s 20% leap raises hopes of a return to dividends

London beer drinkers are loosening their wallets and their throats, the latest numbers from the Capital Pub Company suggest.

Chief executive Clive Watson reckons his policy of focusing on individually run high-quality boozers in London is starting to pay dividends, perhaps literally.

Today's figures for the half year to the end of September are strong enough that investors could see dividend payments return by next year, he hints.

"That is something we are going to seriously consider," he said. "The business is generating cash and we are paying down debts." Sales are up 9% to £11.1 million, with profits rising 20% to £1.4 million.

"Being a London retailer is not a bad place to be just now," said Watson.

Capital has 27 pubs across town including The Inn at Kew Gardens and The Anglesea Arms in South Kensington.

Several of the pubs have undergone a refurb lately, which should improve their appeal over Christmas.

Watson is looking for further pubs to add to the portfolio.

Its most recent deal saw it take on The Wishing Well in Peckham, a pub which also has 17 bedrooms.