Punch disposes of more assets to rival
STAFFORDSHIRE pubco Punch Taverns has announced the £5.3m sale of a series of its pubs to rival Greene King.
The four pubs – two in England and two in Scotland – are all managed, freehold outlets.
Punch said the deal was unconditional and was expected to be completed by July 8.
Proceeds from the disposal of the pubs will be used to reduce group debt and to reinvest in improvements to the current estate.
During the last 12 months, the Burton-upon-Trent firm has sold 23 of its pubs to East of England-based Greene King, brewer of Old Speckled Hen and Abbot Ale.
In a statement, Punch said: “These 23 pubs had a net book value of £52.7m at the most recent balance sheet date prior to their disposal and generated earnings before interest and tax of £4.75m in the relevant financial year prior to their disposal.”
In its recent interims statement Punch announced an 18% fall in interim profits and warned that trading conditions were likely to remain challenges.
In 28 weeks to March 6, the firm said it had seen pre-tax profits decline to £66m.
Peter Cawdron, group chairman, said then there was little doubt that conditions would remain challenging and the group had a duty to its shareholders to make itself as efficient as possible.
It said it was continuing to make good progress with its asset disposal programme, which was focusing on non-core asset sales. This is expected to generate around £300m for the full financial year.
