Punch pledges more care on pub charges

Punch Taverns has vowed to work more closely with about 60 pub operators that have complained they are paying too much for beer and rent.

Its pledge comes after it was revealed last week that the Office of Fair Trading had approached the pub group to give details of complaints, after it had received an inquiry from the Federation of Small Businesses.

A spokesman said that, as the group had 4,300 pubs, the number of complaints was "low" but the company would look at the issue of what its landlords were expected to pay for beer.

As leases come up for renewal, Punch is offering a deal that means the landlords will pay slightly higher rents but get cheaper beer.

"The idea is that the retailer has greater control over his business and is able to do more promotions, which allow greater profits," a spokesman said.

While this option could help some businesses, Punch has no immediate plans to lower rents. It does, however, plan to continue acquiring pubs, at a rate of about five per week over the next year.

This has been a year of upheaval for Punch, which went through a demerger and a stock market flotation in May. To top it all, last week it ousted chief executive Stephen Lambert after less than a year in the role. Lambert is to receive a pay-off of about £230,000.

A spokesman said that while there was a need for both a chief executive and an executive chairman during the demerger and flotation processes, it was decided that, from day to day, one person could carry out the duties of both. Former chairman Giles Thorley is to take over from Lambert.

In its maiden results since flotation, the group saw turnover increase by 6% from £370m to £392m, in the year to 17 August. Half of the increase was due to acquisitions. Pre-tax profit was £93m, compared with £83m in 2001, excluding exceptional and non-recurring costs of £213m arising from the demerger and flotation earlier in the year.