Punch Taverns on track as summer sun boosts takings
BRITAIN’S biggest pubs firm Punch Taverns yesterday reported an upturn – fuelled by the warm weather and World Cup football fans.
The company, which has 7,100 pubs in the UK, said trading had been brisk in recent weeks.
However, with debts of £3.2bn, Punch remained cautious about future trading.
It said in a statement: “We expect the trading outlook in the near term to continue to be uncertain.
“The tax rises and reduction in public spending announced in the recent Budget will inevitably put further pressure on unemployment levels, reduce disposable incomes and constrain consumer confidence.”
Punch said it was “on track” to meet expectations for the year.
The City has forecast profits of £128.7m.
Average earnings per pub in its tenanted estate, where pubs are run by publicans who pay rent, were down five per cent in first 44 weeks of the financial year.
At pubs managed directly by the company, sales were down 2.7 per cent, an improvement on the 3.4 per cent fall seen in the first 28 weeks.
The company insisted that it had continued to tackle its debt.
It reduced gross debt by £664m with a series of measures, including selling off pubs for a total of £263m.
Shares in Punch closed 3.3 per cent higher at 66.7p after the company’s statement yesterday, which said a long-awaited upturn had arrived after dire weather had hit the pub sector early in the year.