Punch Pubs reports revenue rise to £285m
The group’s results for the 52 weeks ended 14 August 2022, showed a revenue rise from £146.4m for the same period in 2021.
The pub operator further reported EBITDA (earnings before taxation, depreciation and amortisation) of £77.7m, up from £26.2m in 2021. Meanwhile, operating profit reached £56.8m compared to £15.2m in 2021.
The report showed Punch operates a total of 1,271 pubs, down from 1,279 in 2021. Within those are 941 leased and tenanted sites, down from 1,016 in 2021, while there are now 274 management partnership pubs versus 210 last year and its Laine pubco sites currently stand at 56, up three from 2021.
Capital investments
Punch said in its report: “We have made significant capital investments on our estate, totalling £212.9m, including pub acquisitions over the five financial years to 14 August 2022 to enhance teh overall quality of the portfolio.
“Sales have recovered well since the reopening of pubs in 2021. Trade in the year was, however, negatively impacted by rising Covid-19 cases during December 2021 and the Government's Plan B restrictions.
“We believe we delivered a solid financial performance and the underlying liquidity position of the group remains healthy.”
The group said EBITDA benefited from the increase in rental income at £29.6m (2021: £15.4m) following financial support to its publicans during closure periods and subsequent reopenings.
Property investments
It added: “The group has spent £34.3m (2021:£25.8m) on expansionary and maintenance capital, which included 64 transformational investments in converting pubs form L&T to our managed partnerships estate.
“Net proceeds from the sale of properties in the period was £8.9m (2021: £26.7m) and cahs spent on acquisitions amounted to £4.9m (2021: £53m for the acquisition of 53 pubs from Young's).”
Last month, chief executive Clive Chesser told The Morning Advertiser’s sister publican MCA the company’s plan was to invest and buy more sites with “an eye on M&A”.
He said: “We’re trading ahead of 2019, but profit is more challenging because of the cost impacts.”
Around 50 Punch pubs each year are switching to the management partnerships model. Under this agreement, Punch pays the running costs for the pub and the operators hire the staff and pay their wages out of an agreed share of overall profits.
