25th Jan 2006 07:01
Punch Taverns PLC25 January 2006 PUNCH TAVERNS ("Punch" or "the Company") AGM STATEMENT At the AGM to be held at 2.30pm this afternoon, Giles Thorley, Chief Executive,will make the following comments on the Company's activity since the start ofthe financial year on 21st August 2005: "This has been another period of significant advancement for Punch Taverns. Ourcore estate of leased pubs continues to improve as we consolidate the recentlyacquired Avebury estate and dispose of some smaller pubs. The acquisition ofSpirit Group, which completed on 5th January, has now added a further dimensionto our Company with the addition of some 1,800 larger pubs which are currentlyrun under direct management. The expansion has created excellent opportunitiesfor continued growth in the years to come. "Our plans for the Spirit business continue on track. As announced in Decemberwe intend to convert some 750 pubs to run under lease agreements, and willcommence this process in the next two months. We are actively reviewing valuecreation opportunities for the remainder of the estate and continue to beencouraged by the quality of the acquired business and the opportunities itpresents. The pubs are trading well and in line with our expectations. "Trading performance in the Punch leased estate continues to be positive, withlike for like turnover growth of around 1% in the first 20 weeks of thefinancial year including the Christmas and New Year period. We have disposed of483 leased pubs in the year to date, and acquired 38, taking our leased estateat 13th January to 7,780 pubs. "We have successfully relicensed our estate with 94% of our leased pubs inEngland and Wales gaining extended hours and increasing our retailers' abilityto meet customer needs. We continue to invest very profitably with ourretailers to enhance their pubs, and to offer industry leading training andsupport to help them grow their business. "In relation to the debate on smoking in pubs, we remain of the view that someform of choice for the consumer is a sensible and pragmatic solution. However,if Parliament does not support the Government proposals, then we see no reasonwhy a distinction should be made to exclude private clubs from a ban. Wesupport the Government's aspiration to reduce the number of adult smokers over a5 year timescale and would therefore wish to see any ban introduced over a clearperiod to allow the industry to continue their highly successful plans to reducesmoking in pubs on a voluntary basis. This would allow pubs to work with theircustomers in the interim and plan a sensible evolution for the time after a ban.At Punch, we are already moving towards a reduction in smoking, using ourinvestment programme to increase outside amenities and to improve the internalenvironment and range of offers in our pubs. "Our pubs are run by retail professionals and entrepreneurs serving their localcommunities, and contributing to a robust and successful business. Theacquisition of Spirit has further increased the quality of our estate andcreated interesting opportunities to grow value. We look forward to anothersuccessful year." 25 January 2006 Enquiries: Punch Taverns plc Tel: 020 7868 8903Giles Thorley, Chief ExecutiveRobert McDonald, Finance Director College Hill Tel: 020 7457 2020Justine Warren This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Punch Taverns PLC