Punch Taverns says full year trading in line

Pub operator Punch Taverns reported a rise in average profit per pub for the 52 weeks to 20 August, with like-for-like net income growth in the core estate.

In a trading statement for the full year, the company said profit per pub was up around 4%, while core estate LFL net income grew 1%.

Punch said it has completed its strategic programme of pub sales, including £83m from property and land sales, £53m from the disposal of its non-core pubs and £99m from the disposal of its 50% holding in Matthew Clark.

Chief executive Duncan Garrood said: “The business has ended the year with a solid set of results, in line with our expectations, and which reflects the completion of our strategic disposal programme.

“The roll-out of our retail division is progressing well and we now plan to accelerate the roll-out to around 150 pubs per year. I look forward to updating the market fully when we present our full set of results on 8 November."

Net debt reduced by approximately £225m in the period, which is a 16% reduction in the year.

Numis, which rates the stock at ‘buy’, said: “Overall, this is a solid update from Punch, which continues to show robust performance in its core estate and execute well on retail conversions.”

At 1000 BST, Punch shares were up 1.4% to 96.55p.