Punch blames restructuring costs as it is hit by a £105m loss
BURTON upon Trent pubco Punch Taverns has recorded a statutory loss of £105m in the year to August 22.
But the firm said its performance – revealed in a statement to the London Stock Exchange this morning – reflects its reduced non-core estate and is in line with expectations.
And it has updated its strategic plan for the future.
Its preliminary results reveal earnings (EBITDA) of £196m, down from £205m in 2014.
Punch said its reorganisation programme is a key factor in it making a loss of £105m. It said the loss includes £166m of non-underlying charges, principally due to the capital restructuring and transition to accounting for properties at market value.
It suggests it now has a higher quality pub estate which is expected to deliver c.95% of pub profits in the 2016 financial year (up from 88% in 2014).
Punch says the average profit per pub up 4%, benefiting from the disposal of non-core pubs.
And the property estate has been externally valued at £2,097m – £692m in excess of nominal net debt..
Punch also highlights the post year end disposal of non-core assets (including the disposal of its 50% investment in Matthew Clark for gross proceeds of £100.7m and pub disposals of £53.5m).
CEO Duncan Garrood said: “Since joining in June, I have undertaken a detailed review of the business and today I set out a clear plan for the future.
“In recent years, Punch has been at the forefront of change within the leased and tenanted pub sector. The conclusions announced today represent an evolution of our existing plan. It is also designed to address the many structural and regulatory changes impacting our market.
“Our strategy enables us to maximise the value in our properties through a phased, lower risk approach to addressing an evolving pub market, taking greater control of the property and retail offer, but without the added overhead that comes with directly employing pub staff.
“We have already made significant steps towards evolving our operating model and financial position, and while we have a lot to do, we are well placed to deliver on our plan.”
