25th Sep 2013 09:11
LONDON (Alliance News) - Punch Taverns PLC Wednesday reported a drop in full-year revenues and profits, as it continues to implement operational changes to restructure the business.
The British pubs owner said that its full-year profits were in line with expectations. It did not declare a final dividend for the year, and said it is unlikely that it will recommend any distributions to shareholders, prior to the implementation of the restructuring.
Revenues of GBP457.6 million for the fiscal year ended August 17 compared to revenues of GBP491.7 million a year earlier, partly due to a reduction in average estate size by 9%.
Pretax profit fell to GBP17.0 million, from GBP52.4 million a year earlier, partly due to an increase in finance costs, and a goodwill and impairment charge totalling GBP14 million. The
It reported a net profit of GBP21.0 million, including a GBP4.0 million tax credit, compared with GBP51.1 million a year earlier.
Punch Taverns said that during the year it disposed of 433 pubs for a total of GBP149 million, GBP11 million ahead of book value. It said that during the year it invested in 476 pubs, at an average spend of GBP102,000, exceeding its target of 400 schemes per year. It said that it plans to invest in around two-thirds of its core estate over the next five years.
The group said that under its new arrangement with The Punch Foundation Tenancy, it now provides partners with a newly refurbished pub and a full range of support. It said that it currently has 48 pubs operating under this agreement, although it plans to extend it to around 200 pubs. It said that the agreement has helped drink sales at the 48 pubs grow by around 50%.
It said that among its 4,096 pubs across the UK, 96% were held on a freehold or long leasehold basis, up from 94% last year, as letting activity and applicant numbers both increased.
It said that its average net income per pub rose 1.5% across the year.
"Expectations of future net income growth for the core estate remain unchanged from those previously announced, with a return to like-for-like net income growth of up to 1% expected in the 2014 financial year," said Executive Chairman Stephen Billingham in a statement.
Punch tavern shares were down 3.3% or 0.50 pence Wednesday morning, trading at 14.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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