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Oh dear they have trotted out that dangerous concept that there should be annual rent increases linked to RPI. The reality is that rent can onl be measured relative to profit and believe it or not profit does not rise with RPI. The last twelve months with volumes falling, sales falling, beer increasing, operating costs increasing well beyond RPI, there has been an impact on profit. Would you believe it, it has gone down and yet is suggesting that the rent goes up by RPI. The GK concept is queeze the tenant as much as we can, whenever we can but let us put out press releases that look like we are the good guys..... do you know some people will believe it.

Millions poured into thousands of pubs... that is the equivalent to a couple of thousand per pub. What Mark Hastings seems to totally ignore is that with turnover down 10% and costs up 7-10% the rents being increased at RPI means that the tenants income will drop at least 50% and that is always assuming that the rent was based on realistic turnover and costs in the first palce. What Mark Hastings will not accept or address is that the average rent per pub does not allow the tenant a reasonable income. And as for Giles Thorley I will quote his predecessor.... he is off his trolley.... when it comes to gauging what his tenants earn. Mark Hastings need to get his pubcos to ensure that rents are properly calculated in whole detail, not spurious percentages, and that the calculation of rent takes account of the wet rent in such a manner as to prove conclusively that the tied tenant is not in a worse financial position than if they were free of tie. The fact is that he cannot do that and it is the reason for the statements he makes, he is seeking to hide the deception behind his rhetoric. Another issue is the fact that the value shown by pubcos for the pubs in their balance sheets have not reflected the dranatic fall in retail profitability. Why is this? Perhaps to register that fall as they rightly should to ensure that their Balance Sheet shows a "true and fair view" is that it could reveal the real danger and risk for shareholders, bondholders, lenders and creditors. This is another part of the hidden agenda.... keep talking... blame others... but hide the truth.

It is known that retail profits are down substantially as a result of lower throughput and higher operating costs. Retail profits per pub are likely to be down between 40% and 75% , depending on size. Since retail profit, excluding accessories such as intangible income, is the basis of property values they will need adjustment. It has been estimated that the property values of Punch could have fallen by half. If that is the case then the ratio of asset values to bonds is probably about 75%. Those bondholders in the buy-back scheme have come out of this quite well. I would not be so sure about the rest s.ince profits continue to fall and so does asset cover All that is needed now is for the company to put its Balance Sheet asset values in order and reflect the realisable values on a tangible asset basis; that means excluding the intangible asset streams.

How interesting to read that the APPBG with its report states that community pubs are essential to the wellbeing of this country and then goes on to say how this must be protected for the benefit of the community. This rubbish now recited is an insult to not only the pubs, the licensees and its employees but to the customer. How dare this bunch of MP's destroy the vary fabric of our society and communities. This is a classic case where the MP's and spokespersons reciting these insults should be identified, named and shamed in the local newspapers, local radio stations and all the pubs in the area where they live. This may be a country that allows freedom of speech but those people that have power and abuse their position must be shamed.

I hope that when he reviews the past which has cost him a lot of money he will reflect on the prices that he paid. It would appear that some advisers have been talking up property prices knowing that he was wealthy. The reality is that pubs are only worth what they can generate as retail operations primarily because they invariably have restricted use. The danger is that some valuers include profit streams that should be excluded and try to ignore costs which should be included. "Adjusted" profit and excessive multiples leading to an unsupportable valuation has been the bane of the pub market. Lets hope that he seeks and obtains damages from those who have sought to distort the market for their own greed.