Punch Taverns reports improving trends
Like-for-like net income fell 3.5% in Q2 against a decline of 5.2% in Q1.
Across the half-year, revenue fell from £264.6m to £243.3m, EBITDA declined from £128.3m to £116.5m, and pre-tax profits dropped from £33.3m to £26.2m (all underlying figures). Basic earnings per share fell from 3.7p to 3p.
However, Punch said it was on-track to meet full-year expectations.
Punch restated its view that "consensual restructuring can be launched in the first half of 2013", despite news last week that the Association of British Insurers (ABI) Special Committee of Noteholders rejected the restructuring proposals put forward by the pub company.
In total, 164 pubs were sold in the period for £55m, above book value and at a multiple of 18 times EBITDA.
The firm said its core estate was 94% let at the period end, up from 91% at March 2012. It invested in 270 core pubs in the half-year at an average spend of c£100k per pub.
Membership of the Buying Club reached 3,300 licensee (March 2012: 2,200).
On the progress of its capital structure review, Punch said it has "continued to engage with the many stakeholders who will need to approve the restructuring proposal".
"While discussions remain ongoing and a range of views have been expressed, the board believes that a consensual restructuring can be launched in the first half of 2013."
Stephen Billingham, executive chairman, said: "Our profit performance for the first half of the year has been in line with management expectations, with improving trends in the underlying business. We expect to make further progress in the second half of the financial year and are on track to meet our full year profit expectations.
"We are progressing with our discussions with stakeholders on our capital restructuring and while discussions remain ongoing, we continue to believe a consensual restructuring can be launched in the first half of 2013."
