Punch Taverns sees its pubs' performance improve

By Martyn leek

- Last updated on GMT

Related tags: Public house, United kingdom, Punch taverns

Punch Taverns has seen its sales decline start to level out
Punch Taverns has seen its sales decline start to level out
Punch Taverns has seen an improvement in its pubs’ performance in what remains a ‘challenging’ trading environment for the UK’s licensed trade

Punch Taverns has seen an improvement in its pubs’ performance in what remains a ‘challenging’ trading environment for the UK’s licensed trade.

In an interim management statement for the 44 weeks to 26 June 2010, Punch said like-for-like sales at its managed pub division had improved more recently, although overall they remain down 2.7 per cent year-on-year.

Describing market conditions as “challenging” it said that like-for-like sales performance at the Punch Pub Company, its tenanted division, reflected “improved trading” from the half-year, also.

In a statement, the group, which will see chief executive Giles Thorley step down in September to be replaced by Ian Dyson​, said: “Management actions have had a positive impact in strengthening the estate with a more stable partner base and fewer closed pubs; however profits remain under pressure as lower drinks margin coupled with reduced rental income from returned pubs impacts profit.”

Punch is still paying out £2m a month to support struggling tenants. 

The company has raised £266m from the sale of pubs so far this financial year and said it expects to hit £300m by the full year.

Martyn Leek is news editor of BigHospitality's sister title M&C Report.

Related topics: Business

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