Punch reports a step-change in managed performance

Punch Taverns has reported a step change in the performance of its managed estate, which has seen an 8.6% increase in like-for-like sales for the 12 weeks to 5 March.

The figures for the 12 weeks show a continued improvement from the group's first quarter like-for-like growth of 2.2% and raised like-for-like sales growth for the first two quarters to 4.9%.

Like-for-like food sales across Punch's managed arm rose 11.7% during the period (up 6.3% in the 28 weeks), whilst drink sales rose 7.0% on a like-for-like basis (up 3.9% in the 28 weeks).

The group, which will announce the results of its strategic review on 22nd March, said its investment programme continued to deliver strong returns and that it was also encouraged by a 5.2% sales growth in uninvested pubs.

During the half year the group refurbished 135 of its managed pubs, with an initial focus on its Chef & Brewer and Fayre & Square brands, and more recently an acceleration of its Flaming Grill format.

The company said that the rate of like-for-like sales decline across its tenanted and leased division continued to slow, down 6.1% during the period, compared to a fall of 7.9% in the 16 weeks to 11th December.

Average net income per pub was up 0.3% in the first half of the year on a year earlier, the first time it has grown year on year since March 2008.

The group said that its Punch Buying Club lease agreement, which offers free-of-tie options, had been rolled out nationally, with online Buying Club orders now accounting for over 15% of sales.

Chief executive Ian Dyson said: "We are pleased that our operational initiatives continue to translate into improved performance within both the managed and leased businesses. Despite the challenging UK consumer environment, we remain confident of further improvements being delivered in the second half of this financial year and are on track to meet our full year expectations."