Capital Pub Company buys into gastro pub Havelock Tavern

The Capital Pub Company has bought another smart London boozer to add to its growing estate.

It is taking a 40 per cent stake in the Havelock Tavern, a gastro pub in Brooke Green, at cost of £280,000 and has an option to buy the remaining 60 per cent at the same valuation in a year's time.

Chief executive Clive Watson said trading since his last update in November had been robust as Capital benefited from the relative strength of the London market and the investment it has made in doing up the pubs it buys.

"Whilst we remain cautious regarding the general economic situation we are encouraged by current trading and look forward to the 2010 World Cup," he said.

Capital also said it had bought The Uplands pub in East Dulwich which will close for a £250,000 refurbishment and reopen after Easter.

That takes its total estate to 29 — not too far off the level at which Mr Watson could look to sell the business.

House brokers Altium said: "The company is on track to achieve good year-on-year growth (in stark contrast to many other licensed retailers) and confidence in our full-year estimates for 2010 is high despite the snowfall.

"The group's high-quality pub estate is trading well and its London bias has largely sheltered it from the recession."