Punch Taverns reveals restructuring talks as profits drop

In its financial results for the 52 weeks to 18 August, the Staffordshire-based business reported profits totalling £64m compared with £76m in the same period a year ago.

Average net income per pub was described as being 'broadly flat' in the 12-month period while total like-for-like net income across its core estate fell by nearly 4 per cent.

However Punch revealed the amount of income coming from food sales rose to 24 per cent and the number of applicants looking to partner with the company grew by a quarter.

Restructure​

The company, which is currently in the process of disposing of a number of its pubs, said it had begun discussions with major shareholders and significant stakeholders to 'seek their input on the range of possible options available to restructure the securitisations' of the business.

Roger Whiteside, chief executive of Punch Taverns, said a number of options were on the table for discussion.

"While the options are complex and will take time to conclude we are confident that a consensual restructuring can be successfully implemented in a manner that delivers value for stakeholders," he said.

Disposal​

Punch Taverns was founded in 1997 with the purchase of a number of pubs from the Bass Lease Company and became the 2nd largest operator of tenanted pubs when it demerged the managed business in 2011​ - a move that created Spirit Pub Company.

In the last year 475 pubs have been sold together with other assets - a programme Punch Taverns said left it on target to deliver a core estate of just 3,000 pubs within five years.

The company has recently invested £38m in 400 of its current core pubs and revealed in today's announcement that it was planning to roll out free Wi-Fi across its estate next year.