Punch plans disposals as profits dip
Pubco Punch Taverns has posted a pre-tax profit of £61m for the six months to 5 March 2011 – a drop of £5m on the comparable 2010 period.
Punch said it now requires a "more aggressive reduction" in its estate and plans to dispose of 2,400 pubs over five years.
The Burton-upon-Trent-based company recorded a loss after exceptional items of £325m, but this was affected by a £366.8m impairment based on pub values as part of its ongoing disposals.
Punch said that it was making “good progress” on its plans to demerge the Spirit division of its pub chain. It said it had “strong cash generation” with free cash flow of £55m.
Managed like-for-like sales were up 4.9 per cent in the 28-week period and 8.6 per cent in the last three months.
Ian Dyson, chief executive officer of Punch Taverns, 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 making further progress in the second half of the financial year. We have had a good start to the third quarter and are on track to meet our full year expectations.
Dyson also announced that Walker Boyd would join the board and become the chairman of Spirit once the demerger completes.
