AN EXPANDING pub company, the Tadcaster-based Commer Group, has bought out a 15 per cent stake in it held by NatWest Development Capital. Now it is poised for a mass purchase of pubs.

The shareholding was set up four years ago when the Commer group needed a cash injection to complete the purchase of its first 34 tenanted pubs from Whitbread.

Since then, with extra acquisitions, the group has moved on and now owns 75 pubs, including the Woolpack, in Fawcett Street, York, the Blue Bell at Monk Fryston, the Drovers Arms, Skipwith, the Highwayman Tavern, in Selby, and the Black Bull, in Richmond.

The unusual buy-back of shares comes as Jim Walsh, the group's chairman and founder, announced that Commer's operating profits rose six-fold during those four years to £1.5 million. Over the same period the company's asset value has grown from £3.5 million to £20 million.

Mr Walsh said: "It means that we now have much greater flexibility to go forwards, and because the relationship with our venture capital organisation is very good we are considering larger deals if they come up.