Sunny

Sunny

max temp: 13°C

min temp: 9°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

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.

shares

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.”

shares

0 comments

Thomson Airways' new Boeing 787 Dreamliner touching down at Stansted.

Stansted Airport today marked the arrival of the latest in airline technology with the launch of a new long-haul service from the Essex terminal.

'Love every drop' branding on an Anglian Water van.

Regional water and sewerage services group Anglian Water has announced an increase in underlying annual profits, following a year which marked the end of a five-year settlement with regulator Ofwat.

An LA Fitness gym.

Low-cost gym operator Pure Gym is to acquire mid-market rival LA Fitness, picking up 43 clubs for an undisclosed sum thought to be in the range of £60million to £80m.

Frank Brumby, eastern region chairman of R3.

East of England business victims of late payment saw more than one in six (16%) of their invoices paid late in the last six months, according to research by insolvency trade body R3.

B&Q parent Kingfisher said it was ploughing on with a shake-up plan

B&Q parent Kingfisher said today it was ploughing on with a shake-up plan “at pace” as it reported a first quarter slide in sales at the DIY chain.

Sarah Howard, president of Suffolk Chamber of Commerce, and Mark Pendlington, chairman of New Anglia Local Enterprise Partnership, at the celebration marking the first year of work by the New Anglia Growth Hub.

Supporters and staff from the New Anglia Growth Hub today celebrated its first year of work.

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Angus Berry, energy manager at Thames Water, and Richard Robey, sales and marketing director at Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

Most read

Most commented

Topic pages