Pub chain Spirit, which owns the Chef & Brewer, Flaming Grill and Fayre & Square chains, has said that it remains confident, despite a looming deadline that will require it to pay back its £700 million debt next year.

The company, which was spun off from Punch Taverns in 2011, is due to pay back nearly £19 million by the end of August and is seeking to restructure its debt by renegotiating terms with bondholders.

ike Tye, Chief Executive Officer, commented: "I am pleased with the further progress we have made this year in what have been tough trading conditions. Our continued focus on the execution of our strategy to deliver hospitality excellence for our guests has delivered a strong financial performance with growth of 6% in profit before tax and earnings per share up 9%. As a result of this performance the Board is recommending an increase in the full year dividend of 5%.

“Our strong portfolio of Managed brands has achieved further growth in sales which, coupled with sustained productivity and efficiency gains, has driven significant expansion of Managed margin.

"The performance of our Leased pubs has stabilised and, through a combination of investment and innovation in our operating agreements, we are confident of returning the Leased estate to growth in the year ahead. We have entered the new financial year with good momentum in the business and remain confident in our strategy for future growth."