STAFFORDSHIRE pubco Punch Taverns says it has been boosted by a favourable summer and pub refurbishment as trading remained consistent.
In a final year statement for the 52 weeks ended August 21, 2010, the Burton-upon-Trent company said today it expected earnings before tax and exceptional items would be marginally ahead of its previous expectations.
In its leased and tenanted division ‘Punch Partnerships’, its estate had been strengthened through the percentage of pubs on substantive agreements being increased to 86%, failure rates halved and financial support to partners stabilised at just under £2m per month, it said.
Profits remained under pressure as a result of lower drinks margin coupled with reduced rental income from returned pubs, the statement added.
Punch Taverns has seen improved sales volumes over the final quarter but like-for-like profit decline is expected to be line with the rate reported for the half year.
In its managed division Punch Pub Company, like-for-like sales in the 52-week period were 2% below last year.
Improved trading has been delivered in the second half of the year and particularly in the final quarter where like-for-like sales for the last 12 weeks were up 2.6%.
Operating margins have continued to improve since the half year and are expected to be broadly in line with last year.
The firm says it has invested in over 200 managed pubs during the course of the full financial year to August 2010.
Since the start of the financial year, Punch Taverns says it has reduced gross debt by £684m and net debt at the year end stood at £3.1bn.
The statement added the company expected the trading outlook in the near term to be uncertain, particularly given the potential impact of the June budget but it said it was encouraged by its current trading momentum.
A preliminary results statement for the full year is due to be issued on October 12.
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