Punch sees pre-tax profits rise

Punch Taverns has this morning reported a 13% rise in pre-tax profit before exceptional items to £282m for the 52 weeks to 18 August.

Ebitda increased 9% to £664m, while revenue was up 10% to £1.705bn.

The company said that performance was driven by the integration of acquired businesses and the disposal of over 980 pubs, including 869 sites to Admiral Taverns for £326m in June.

It said that since the year end its managed estate had traded broadly in line with last year's sales levels, with an increased proportion of the sales mix coming from food.

The group reported that the growth trends seen across its leased estate in the second half of last year had continued into the current financial year.

Punch said that it remained confident about its long-term prospects despite the sector facing a "degree of uncertainty" and short term challenges.

Giles Thorley, chief executive, said: "This has been a year of intense activity, significant operational change and business improvement for the group. We are pleased to have once again delivered a strong set of results despite the challenges of the last quarter of the year.​

"The completion of our integration programme leaves us in our best ever shape from which to further develop the business and capitalise on the opportunities open to us."

Like-for-like sales for Spirit, its 887-strong managed estate, rose by 3.5%, while average profit per pub across the division increased 15% to £216,000.

Across its 7,561 leased pub, like-for-like sales climbed 2.7%, with average profit per pub up by 11% to £61,000.

During the year the company transferred 563 pubs from managed to leased, disposed of 986 non-core smaller pubs, acquired 178 pubs, including 82 Mill House Inns.

It invested £202m on enhancing over 1,500 pubs.

Punch said it was too early to evaluate the full impact of the smoking ban in England and Wales but believed it would a long-term positive effect to the industry.

It said that its Scottish pubs had returned to growth.

The company also announced the appointment of two new directors.

Deborah Kemp, who has over 20 years' experience in the pub industry, joins the group's board as an executive director.

She joined Punch in 1998 and has held a number of senior roles at the company prior to her appointment as managing director of its leased pubs in March this year.

Mark Pain, who is currently chief financial officer of Barratt Developments, also joins the company's board as an non-executive director.