Punch takes a hit as Spirit sales soar
Sales have strengthened at de-merged pub company Spirit, it was revealed this morning. The Burton-upon-Trent-based business gave its first trading statement since demerging from Punch Taverns, which itself revealed a 5.2 per cent drop in income today.
Punch Taverns said net income was down 5.2 per cent across its total estate for the year ending 20 August.
However, the company said its disposal programme, together with improved like-for-like trends, resulted in growth in income per pub of 0.9 per cent.
Both companies revealed separate accounts for the first time since Punch completed the de-merger of its Spirit division.
Spirit's sales rose in the 12 weeks to 20 August, it said this morning. Like-for-like sales were up 3.8 per cent, while food and drink revenue rose 7.9 per cent and 1.2 per cent respectively.
Both companies said that fourth quarter revenue was affected by a strong comparative quarter last year, which featured the 2010 World Cup.
Spirit said it had now begun the process of converting up to 100 leased pubs to its managed brands, with two conversions already completed.
Ian Dyson, Spirit's chief executive officer, said: "We are pleased with the continued progress we have made in the business, as we strive to become the best managed pub company in the UK. We have delivered another quarter of strong growth and have again outperformed the market.
"While the economic and consumer outlook remains challenging, we believe we have the right plans in place to enable us to make further progress in the coming year."
As well as a 5.2 per cent drop in total estate income for its full year, Punch said net income at pubs operating for more than a year fell 5 per cent in the fourth quarter
Despite falling sales, Punch's chief executive Roger Whiteside said it was "on track" to meet its expectations for the next year.
As of 1 August, Punch now comprises a leased and tenanted pub estate with about 5,000 pubs. It also has a 50 per cent shareholding in the Matthew Clark joint venture.
The pubco said it was also affected by regional trends, and noted that trading in London and the South East was "stronger" compared to other regions.
However, Punch said it had completed renovations on 500 of its pubs across the country in the past year which had achieved "good returns and increased food participation in the core estate".
Whiteside added: "Punch is now a dedicated high quality leased and tenanted pub business. Having completed the demerger, we have a clear operational and strategic plan and we will build on the positive momentum delivered throughout this year. Despite the challenging UK consumer environment we are on track to meet our expectations for the full year."
