Admiral Taverns merges divisions

Tenanted pub operator Admiral Taverns is to merge its Phoenix turn-around estate with its core pubs division to create one trading business.

The move comes as Admiral, which currently runs 1,600 pubs, nears the end of a turn-around phase and results from an increasing focus on further driving the performance of its pubs.

There are now strategic and operational benefits in running its 400 Phoenix pubs alongside its 1,200 core pubs, Admiral said.

The company has indicated that its core estate of pubs with a long-term future within the business is probably around 1,100 to 1,200-strong.

Managing director Kevin Georgel said: "[This] is another step forward in our long-term plan to become the leading community pub business.

"There are still pubs within the estate that we do not expect to own in the longer term but this change signifies the progress that we have made in shaping a sustainable estate of tenanted pubs.

"It is right that the existing BDM-licensee relationships in place, which are so crucial to our business, remain unaffected by this move.

"Naturally, there are still pubs that previously sat in the Phoenix division that require intensive licensee support.

"Therefore, it is important that BDMs with those requisite skills continue to focus on supporting those pubs, while BDMs in what was previously known as the core estate continue to help licensees drive growth in their businesses."

The new structure will take effect from the beginning of Admiral's new financial year on 1 June. Last month, it was revealed that Admiral, which is owned by Lloyds Bank, had wiped £47.2m off its debt in the seven months to 31 May 2010 as it trimmed its estate by 11% and reported improved trading performance in its turn-around division.

Admiral was incorporated in its current guise in October 2009 after a financial restructuring that saw Lloyds write off around £600m of debt.