Punch benefits from impact of new structure
STAFFORDSHIRE pubco Punch Taverns has said a new business structure is reaping rewards for the company.
In its latest set of interims, which cover the 28 weeks to March 5, 2016, the Burton-based group said performance had been in line with management expectations.
It said there was continued growth from a higher quality pub estate, with the average profit per pub across the entire estate up 3.0%. Core estate like-for-like net income rose 1.6%.
Punch said underlying EBITDA of £94m (H1 2015: £105m) reflected the impact of the £288m disposals programme completed over the last 18 months.
The six-month period saw £59m of non-underlying profit from asset disposals.
In addition, nominal net debt was reduced by £191m (14%) in the half year and by £293m since the group’s October 2014 refinancing.
It now has £235m in cash on its balance sheet, with no bank debt and low scheduled amortisation at c.£36m per year over the next five years.
Duncan Garrood, Punch CEO, said: “We are already making good progress delivering on the strategy we set out in November 2015. We have launched new operating models, renewed our focus on customer service and delivered improved support to our publicans.
“The roll-out of our new Retail contract is progressing well with underlying profit and sales post conversion being ahead of our initial expectations.
“The combination of our growing cash balances, strong cash flow and limited scheduled amortisation over the next five years puts the group in a stronger financial position going forward.”
