Partly Cloudy

Partly Cloudy

max temp: 22°C

min temp: 14°C

ESTD 1874 Search

The pigs are coming. Find out more about

Pigs Gone Wild

here.

UK: Punch Taverns upbeat on talks over capital restructuring

12:29 14 December 2012

Hockey Club given green light to serve alcohol at new club house

Hockey Club given green light to serve alcohol at new club house

PUBS group Punch Taverns said today it remained confident of agreeing a deal to restructure its £2billion debt pile as it reported steady trading in the opening weeks of its new financial year.

Punch, which owns more than 4,500 leased pubs, including about 150 in East Anglia, said average profit per pub had remained stable in the 16 weeks to December 8, despite the continuation of “challenging” market conditions.

Net income from the group’s core estate was down 5% on a like-for-like basis, but it said this was in line with management expectations in view of tougher comparatives for the first half of this year.

Trading comparatives were expected to improve during the second half when the business would also benefit from recent improvements in letting and investment activity, Punch said.

However, it added that net income for the core estate was still expected to decline over the current year as a whole, in line with the fall seen last year, as it rebalanced rents in response to trading conditions, with a return to annual growth not expected until 2013-14.

Punch said that its disposal programme of non-core pubs remained on track, with proceeds of £193million having been raised from the sale of 758 properties since beginning the programme in 2011, slightly ahead of book value.

A total of 86 pubs had been sold in the first quarter of the current financial year, including 11 from the core estate, generating proceeds of £26m, with around 400 non-pub properties expected to be sold during the year as a whole, it said.

In October, Punch reported a pre-tax profit of £64m for the 52 weeks to August 18, down nearly 16% from £76m the previous year, and revealed it was planning talks over restructuring its debt.

Yesterday, it said discussions with “certain major shareholders and other significant stakeholders” were continuing, and would be extended shortly to noteholders under its A and B securitisations.

“On the basis of the dialogue with stakeholders to date, the board continues to believe that a restructuring can be successfully implemented,” it added.

Punch chief executive Roger Whiteside said: “Our performance in the first 16 weeks of the financial year has been in line with management expectations.

“While the UK consumer environment is likely to remain challenging for at least the near-term, we continue to make good progress with our clear operational plan to return the core estate to growth in the medium-term and extract maximum value from our non-core assets.”

0 comments

Building work at Beardmore Park, Martlesham Heath.

Major plans for a new £8million retail estate in Martlesham Heath, including DIY store Wickes, and scores of new jobs have been confirmed.

Carolyn Fairbairn, director-general of the CBI.
Photo: Ben Watkins

Financial stability and neglected election promises should be the main focus for the Government following Britain’s vote to leave the Eurpean Union, business groups said today.

Robert Sheasby, East Anglia regional director at the Natinoal Farmers' Union.

The Government must ensure that British agriculture is not disadvantaged following the UK’s vote to leave the European Union, the National Farmers’ Union’s leader in East Anglia said today.

The London Stock Exchange.
Photo: Tim Ireland/PA

Suffolk shareholders are today watching in fear as more than £100bn was wiped off London’s FTSE 100 index within minutes of markets opening after Britain’s decision to leave the European Union.

Security gates at the EU Referendum in Manchester Town Hall. Photo: Peter Byrne/PA Wire

There is much uncertainty this morning as Britain wakes to news we will be quitting Europe, here Annabelle Dickson addresses the biggest questions right now.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

Great British Life

Great British Life
MyDate24 MyPhotos24