Punch repeats plea for restructuring plan support on back of strong interims

STAFFORDSHIRE pubco Punch Taverns has reported a strong set of interim results and is again urging stakeholders to support its restructuring plans.

Its interim results for the 28 weeks to March 1 reveal profits before tax of £50m compared to £26m in 2013, however the latest figure includes £30m of profits attributable to bond purchases.

Burton-based Punch, which says it has £305m of cash reserves, predicts it is on track to meet full year profit expectations and on target to deliver its business plan. 
 
The average profit per pub is up 4% across the estate of 3,956 pubs while enquiries from potential tenants is up 40% on 2013.

And its investment programme is on track with 170 core pub investments completed at an average spend of c.£90,000.

Some 116 pubs have been transferred to the core estate, leaving 995 pubs in non-core.

Punch revealed 140 pubs and other assets have been disposed of for £51m, £6m ahead of book value and at a multiple of 17x EBITDA.

Earlier this month Punch asked shareholders for more time to enable restructuring plans to be concluded.

It stated that the business faced a crucial period in its history and unless the restructuring was agreed then there was a possibility it could default in the near term.
 
In today’s statement it said  extensive engagement with a wide group of stakeholders is continuing and the board remains of the view that a consensual restructuring is in the best interests of all stakeholders

Stephen Billingham, executive chairman of Punch Taverns, said: “We have delivered profits for the half year in line with our expectations.
 
“Our results reflect the significant operational changes we have made over the last 15 months which are now embedded in the business.  We have returned the core estate to growth and delivered a 4% improvement in average profit per pub across our 4,000 pub estate.
 
“We are on track to deliver our full year profit expectations and start the second half of the year backed by the increased level of partner operational support that will further strengthen the performance of our pubs.
 
“Proactive engagement on the restructuring discussions is continuing and we urge all stakeholders to support the covenant waiver requests to provide the business with stability and time to effect a consensual restructuring of the group’s financing arrangements.” 

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