Punch back in the black after disposals
Punch Taverns saw average profit per pub increase by 4% in the year to 20 August 2016 after it benefited from the sale of non-core pubs in its estate totalling £324m over the last two years.
The company, which now numbers around 3,276 pubs nationwide, recorded revenue of £407m for the year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) were £178m for the period, down from £196m the year before, which Punch said reflected £324m of strategic disposals completed over the last 24 months.
Pre-tax profit stood at £60m, as compared with a loss of £105m in August 2015.
Punch's Mercury division, which numbers just under 700 pubs, generated revenue of £48m and EBITDA of £20m.
Mercury, run by Paul Pavli, who previously ran Punch's new business division, was created earlier this year and replaces Punch's turnaround division and aims to deliver like-for-like growth by 2017.
The business is also growing its managed retail division, in which 109 pubs are now trading.
Duncan Garrood, chief executive officer of Punch Taverns, said:
"The business has ended the year with a solid set of results, in line with our expectations, and which reflects the completion of our strategic disposal programme.
"We have made good progress towards delivering on the strategy we set out in November 2015. In particular the roll-out of our Retail division is progressing well and we are accelerating the roll-out to c.150 pubs per year.
"The new Pubs Code Regulations has resulted in us having to remarket all lets in line with the new regulatory requirements. While this is impacting letting activity in the short term, our expectations for the longer-term growth prospects for the business remain unchanged.
"Punch has a clear plan for the future, a strategy that is progressing well, and a unique operating model that is expected to drive improved performance over the coming years."
Punch's Mercury division to contain more than 700 pubs >>
Punch profits down as it announces completion of disposals >>
