Punch’s leased pubs continue to see decline

INCOMES are dropping in the leased pub division of Burton-based Punch Taverns while its managed units are growing their food and drinks sales.

In a Q2 trading update for the 12 weeks to March 5, 2011, Punch said like-for-like net income was down 6.1% for the quarter and down 7% for 28 weeks.

Average net income per pub in the leased division climbed by 0.3% for the first half year.

In its managed pubs, like-for-like sales rose by 8.6% for the period, with food up 11.7% and drinks by 7%.

The company said it was on track to meet its full year expectations.

“The investment programme continues to deliver strong returns and we have also been encouraged by a 5.2% sales growth in uninvested pubs,” the statement said.

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“During the half year we have refurbished 135 pubs, focusing our activities on the Chef and Brewer, Fayre and Square brands and lately on the acceleration of the Flaming Grill brand.

“We remain on track to refurbish circa 200 pubs in the full year. Our Pathway to Partnership programme continues to deliver benefits with the rate of like-for-like decline improving over the period.”

Chief executive Ian Dyson said: “We are pleased that our operational initiatives continue to translate into improved performance within both the managed and leased businesses.

“Despite the challenging UK consumer environment, we remain confident of further improvements being delivered in the second half of this financial year and are on track to meet our full year expectations.”

The interim results for the 28 weeks ended March 5, 2011, are due to be announced next month.