3rd Sep 2013 08:47
LONDON (Alliance News) - Punch Tavern PLC Tuesday said strong trading in the fourth quarter helped return average net income per pub to growth in the fiscal year across its entire business.
The UK based pub company said its full-year profits are in line with its expectations and expects like-for-like net income growth of up to 1% this year, and between 1% and 2% in 2015. It also said it is considering a "consensual restructuring" programme to be launched in the second half of 2013, referring to voluntary job cuts.
It said the average net income per pub rose 1.5% in the 52 weeks to August 17 and like-for-like trends in net income are improving, with fourth-quarter like-for-like net income in its core estate up 0.4%.
The company said it will report underlying earnings before interest, taxes, depreciation and amortisation between GBP210 million and GBP220 million.
Punch Taverns said that it ended the year with 96% of its core estate pubs let on substantive agreements, ahead of its target of having between 93% and 95% let.
The company said it completed 476 core investments during the year, at an average price of GBP102,000 per pub, and sold 433 pubs for a total of GBP149 million.
It also said that its loyalty programme, Punch Buying Club membership, has increased, with approximately 90% of its core pubs now holding a membership.
Punch Taverns shares were trading 5.7% higher early Tuesday at 12.95 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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