Sales climb at Punch as demerger gathers pace

FOOD and drink sales at Staffordshire pubco Punch Taverns continue to climb as its proposed demerger gathers pace.

In a Q3 update for the 12 weeks to May 28, 2011, Burton-based Punch said managed like-for-like sales in its ‘Spirit’ division were up 7.3% for the period, with food up 8.4% and drink up by 7.3%.

This was tempered though with net income in its ‘Punch’ division down 3.3% and average net income per pub up by 1.3%.

In March, the plc announced plans to separate its Punch and Spirit divisions and today’s update said the project remained on track to be completed by the end of the summer.

In addition, the demerger will see changes at board level with Roddy Murray confirming he will not take up the role of finance director designate for Spirit.

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Russell Margerrison, who is currently group business planning director and has been leading the operational separation of the business, will assume the role of interim finance director of spirit.

Mr Margerrison has been with Punch since the beginning of the year and was previously managing director trading and finance director for tour operations at Thomas Cook, finance director at Rank Holidays and spent 15 years in various management positions with Bass.

Chief executive Ian Dyson said: “We are pleased that our operational initiatives continue to translate into improved performance for both Spirit and Punch.

“This has been achieved during a period of substantial change as we prepare for the proposed demerger of Spirit.

“Despite the challenging UK consumer environment we are on track to meet our full year expectations.”