Shares in Punch Taverns soared this morning despite the group warning that its pre-tax profits for the year will be up to three per cent below expectations, due to the recent poor weather.
Updating the market today, the pubco said trading during the year had been in line with expectations, "with the exception of a period during early summer when unprecedented poor weather and flooding affected the trading opportunity for many pubs".
But the City welcomed the implications of the statement - that trading was fairly positive - and factored in the possibility of the group making a key corporate acquisition or returning funds to shareholders in the near future. Punch shares were up 41p - nearly four per cent - at 1107p.
The group said the quality of its leased estate was "significantly improved" by the conversion of 637 former Spirit managed houses. Its 7,500-odd leased pub estate saw like-for-like sales up one per cent, and profits up 2.7 per cent.
Punch said the average profitability of its leased pubs increased by more than 10 per cent during the year.
Its managed estate saw sales growth of 3.5 per cent, which some analysts suggested meant sales had slowed from the first half, although they too pointed to the bad weather as a factor.
Punch said its debt profile had improved thanks to a recent refinancing, and it was not exposed to the recent credit market volatility.
Francis Patton, Punch's customer services director, said it was too early too assess the impact of the English smoking ban, particularly as it coincided with the poor weather, but that the group's pubs were well prepared for the coming autumn and winter trading periods.
The group also announced the imminent retirement of finance director Robert McDonald. He will be replaced next month by Phil Dutton, a Punch non-executive director since January this year.