PUBCO Punch Taverns has announced a £29m fall in annual pre-tax profits compared with a year ago, while full year EBITDA stood at £422m against £514m in 2009.
Pre-tax profits in the year to August 21 fell to £131m from £160m, while disposal proceeds were £299m, comprised largely of non-core assets. The sales achieved an average multiple of 16x EBITDA.
Ian Dyson, the Staffordshire group’s new chief executive, said the trading environment while showing recent signs of improvement, had been very tough.
He said he had initiated a comprehensive review of the group’s strategy, operating performance and capital structure to create better value for shareholders.
The Burton-upon-Trent group’s statutory results show a loss after exceptional items of £160m following a net exceptional charge of £253m. All of the exceptional charges were non-cash except for £2m of reorganisation charges.
Exceptional items include a £218m charge for pub impairments to appropriately value the non-core estate.
Basic loss per share after exceptional items was 24.9p.
The company also managed to reduce net debt by £322m (9%) to £3.143bn.
Punch said debt repayments and management actions to date had helped maintain headroom against financial covenants.
The group said improved trading momentum was delivered in the final quarter of the financial year and has continued into the early weeks of the new financial year.
Mr Dyson said: “I am delighted to have joined Punch and to have the opportunity to build on the progress made over the last year. While we have been encouraged by more recent trends in both the leased and managed businesses, the economic environment is very difficult and there remains room for improvement across all aspects of our business.
“I have started a comprehensive review of our strategy, operating performance and capital structure with a view to exploring options to create value for our shareholders.”
Punch is the UK’s leading pub operator with more than 6,700 leased, tenanted and managed premises.
