6th Sep 2006 07:01
Punch Taverns PLC06 September 2006 PUNCH TAVERNS PLC("Punch" or "the Group")Pre-Close Trading Statement Punch Taverns completed its 52 week financial year on 19th August 2006 andexpects to announce full year results on Thursday, 9th November. Trading across the Group has continued in line with Board expectations.Excellent progress has been made towards reorganising and increasing the qualityof our core estate. The leased business, which comprised 7,846 pubs at year end, continues toperform well. Average turnover per pub increased 2.7%, with like for liketurnover up 1.0%, and margins improved as a greater proportion of turnover isreceived on rent. We continue to support our retailers with trainingprogrammes, business initiatives and investment; over 950 leased pubs havebenefited from Punch investment in the past year. Our leased estate is already amongst the highest calibre and has been furtherimproved by the acquisition of 96 high quality pubs, conversion of pubs from theSpirit estate, and the sale of 551 smaller pubs with less sustainable prospects. Spirit, which was acquired on 5th January 2006 and comprised 1,410 pubs at yearend, has traded well and increased like for like sales by 3.6% in the 32 weekssince acquisition. We have been very active in implementing our strategic plan for Spirit. Fromthe acquired estate of 1,830 managed pubs, 382 have been sold or agreed forsale, at prices which exceed our original expectations. These include packagesof 290 pubs and 31 pubs to GI Partners and Regent Inns respectively, plus afurther 61 individual or small group pub sales. In addition, 74 pubs have beenconverted to the leasing format, with the conversion rate now accelerating asmore pubs are marketed and the processes are fully established. The remainingSpirit business has been simplified, reorganised and refocused. We havecompleted the modifications to the Spirit debt facilities, increasing our assetmanagement flexibility, and we have renegotiated a number of supply contractsonto a group wide basis, most notably a long term brand supply contract withScottish & Newcastle plc. We continue to prepare for the impending smoking ban in England and Wales whichis anticipated in summer 2007. We have learned valuable lessons through ourfirst hand experience of consumers' reaction to the introduction of the Scottishsmoking ban and are now applying this experience to our existing initiativesthroughout the rest of our estate. Whilst it is too early to draw any firmconclusions from its impact, we are confident that we will be optimally placedto offset any effect of this change in legislation next summer. During the last 12 months we have taken significant steps in developing aportfolio of extremely high quality pubs. Simultaneously, we have put in placethe infrastructure to enable our assets to perform to the optimum operatingmodel. We will continue to seek opportunities to further increase the qualityof our estate and to operate our assets both to maximise the business portfolioand value for shareholders. Giles Thorley, Chief Executive of Punch Taverns, comments: "This has been a very active year where we have significantly upgraded thequality of the pub estate through investment, acquisition and disposal. Ourpubs continue to trade well and offer excellent prospects for continued growth." 6 September 2006 Enquiries: Punch Taverns plc Tel: 020 7868 8903Giles Thorley, Chief Executive College Hill Tel: 020 7457 2020Justine WarrenMatthew Smallwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Punch Taverns PLC