1st Sep 2015 07:24
LONDON (Alliance News) - Punch Taverns PLC on Tuesday said overall profit performance for its recently-ended financial year was in line with management expectations and previous guidance, as it continues with its plan to dispose of its non-core pub estate.
The pub operator said it expects to report underlying earnings before interest, tax, depreciation and amortisation of between GBP193 million and GBP200 million in the year that ended August 22, as it said its core estate net income grew 0.3% and the average profit per pub in the higher quality pub estate rose 4%, benefiting from the disposal of non-core pubs.
Punch added that proceeds from disposals were ahead of guidance and above book value at GBP89 million, and that the core estate is now expected to generate around 95% of pub earnings before interest, tax, depreciation and amortisation in the financial year 2016.
In August, Punch said it had agreed a deal to sell 158 non-core pubs to retail-sector-focused real estate investment trust NewRiver Retail Ltd for GBP53.5 million, in line with its plan to sell its non-core estate at a rate of around 200 pubs per year. The deal is expected to complete on September 11.
Punch said on Tuesday that it has reduced its nominal net debt by GBP153 million in the year.
"The business has ended the year with a solid set of results, in line with our expectations. The business has clear plans for further debt reduction and will benefit from being able to focus more resources on the higher quality core pub estate," Chief Executive Duncan Garrood said in a statement.
Shares in Punch Taverns were trading up 0.2% at 125.25 pence early Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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