Number of closed Punch pubs "marginally higher

Despite the licensed trade experiencing the toughest trading conditions in years, the number of closed pubs across the Punch Taverns estate was only marginally higher than this time last year, according to the group's chief executive Giles Thorley.

At around 300 shut pubs in a leased pub portfolio of some 7,600 pubs, there were only nine more sites closed for business than in the same period last year, he said.

Thorley was speaking as Punch announced first half pre-tax profits of £133m, up one per cent.

Describing trading as "challenging", and stressing the fact that the operator was providing a range of support initiatives to licensees across its leased estate, the Punch boss said a variety of reasons were behind the closures.

"Some of these [300] pubs will have trading issues, others will be closed for refurbishments, or awaiting new operators," said Thorley.

Punch said despite the market conditions interest in the assignment market was strong, with 270 pubs assigned during the period at an average premium of £72,000.

Thorley meanwhile denied speculation that the pubco's finances were stretched.

"Our gross debt has fallen in the first half by £56m, we don't plan on refinancing the business until December 2010 and our interest cover has risen from 1.9 times to 2.0 times."

Acknowledging that trading was weak, Thorley said his company was providing "much more support [to licensees] than many other leased operators", and that this trend would continue.

Thorley also drew a line under the recent row with Mitchells & Butlers (M&B) over the future of its managed pub estate, Spirit Group and any chances of merging its operations with those of M&B.

The recent weeks' events had been "a minor distraction", Thorley said. "We had a good go at it, but we're pragmatic enough to know that sometimes these things don't happen."

Punch had "lost a lot more deals than we have won", Thorley added, and that the group was now focused on growing through selective acquisitions and improving the quality of its pubs.

Punch's shares were trading today 41p lower at 544.5p.