Punch records £105m loss after cost of restructuring

12 November 2015 by
Punch records £105m loss after cost of restructuring

Punch Taverns has recorded a £105m loss for the year after being hit by the cost of restructuring the business.

It said its debt was now down £513m to £1.4b. Underlying EBITDA stood at £196m.

Income at its core estate of 2,400 pubs, which accounts for 95% of profit, was up 0.3%. Punch has a total estate of 3,588 pubs.

After the year end it completed the sale of 158 pubs £53.5m and sold its 50% joint venture investment in Matthew Clark for £100.7m.

Average profit per pub was up 4%, benefiting from the disposal of non-core pubs.

Chief executive Duncan Garrood said: "Since joining in June, I have undertaken a detailed review of the business and today I set out a clear plan for the future. In recent years, Punch has been at the forefront of change within the leased and tenanted pub sector. The conclusions announced today represent an evolution of our existing plan. It is also designed to address the many structural and regulatory changes impacting our market.

"Our strategy enables us to maximise the value in our properties through a phased, lower risk approach to addressing an evolving pub market, taking greater control of the property and retail offer, but without the added overhead that comes with directly employing pub staff.

"We have already made significant steps towards evolving our operating model and financial position, and while we have a lot to do, we are well-placed to deliver on our plan."

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