Punch profits rise 13% year on year

November 9, 2007: Pre-tax profits at Punch Taverns plc, before exceptional items, rose 13% to £282 million, the firm's preliminary results have revealed.

Its report shows like for like pub contributions for the leased business increased 2.7%; like for like sales for the core managed estate rose by 3.5%.
The average profit per pub was up by 11% in the leased business and 15% in the managed business . Some 563 pubs transferred from managed to leased in the current year, following 74 completed in 2006.

During the years Punch disposed of 986 non-core smaller pubs and acquired 178 premises, including 82 Mill House Inns.

Some £202 million was spent on enhancing over 1,500 pubs across the estate.

“This has been a year of intense activity, significant operational change and business improvement for the group," said chief executive Giles Thorley.

"We are continuing to further improve the quality of our estate whilst maintaining the robust nature of the business model. We are pleased to have once again delivered a strong set of results, despite the challenges of the last quarter of the year.

“The completion of our integration programme leaves us in our best ever shape from which to further develop the business and capitalise on the opportunities open to us.

"Whilst the sector is experiencing a degree of uncertainty and is not without its short-term challenges, we remain confident about the long-term future prospects for the business.”

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