15th Apr 2014 09:09
LONDON (Alliance News) - Pub operator Punch Taverns PLC Tuesday reported a drop in revenues and significantly widened its losses in the first half of the year, as its continued to close and sell off pubs in its non-core estate, and booked hefty charges related to its capital restructuring.
For the 28 weeks ended March 1, Punch Taverns reported revenues of GBP233.5 million, down from GBP243.3 million a year earlier, and a pretax loss of GBP174.9 million, compared to a loss of of only GBP16.7 million the prior year.
During the period, Punch Taverns booked a total of GBP224.6 million in exceptional costs, most of which was charges related to its capital restructuring, it said.
Punch Taverns has been seeking more time to get a deal with its creditors for a broad restructuring of its debt pile.
The pub operator said that extensive talks between its stakeholders on a consensual restructuring of the its two Punch A and Punch B securitisations continues.
"The waiver is necessary to avoid a near-term default in both securitisations, which in the case of the Punch A securitisation would occur by May 15, 2014," the company said in a statement.
It has been asking noteholders for covenant waivers, and has warned its bond holders and other creditors several times, that they stand to lose more of their investments if the sides can't reach a consensual deal to restructure the pub operator's debt. It said it will convene another noteholder meeting on April 29.
During the first-half of the year, Punch Taverns said its spent a total of GBP29 million on capital expenditure as it continues its pub investment and non-core pub disposal programmes. It said it realised GBP51 million of net proceeds on asset disposals, from the sale of 140 pubs together with other assets.
It said that its pub investment programme is on track, with 170 core pub investments completed at an average spend of around GBP90,000. It also said it transferred 116 pubs to its core estate, leaving 995 pubs in its non-core portfolio.
Punch Taverns said that the average profit per pub in the first half of the year, was up 4% across its entire estate of 3,956 pubs.
"We are on track to deliver our full year profit expectations and start the second half of the year backed by the increased level of partner operational support that will further strengthen the performance of our pubs," said Executive Chairman Stephen Billingham in a statement.
Punch Taverns shares dropped 5.7% Tuesday morning, trading at 12.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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