Profits 'are rising for Punch hosts'
Punch boss Giles Thorley has insisted that company analysis during rent reviews has shown that his licensees are seeing increases in profits.
His comments come as the company reported a sluggish 1.1% rise in like-for-like sales in a pre-close trading statement. "Our analysis suggests that our retailers are becoming more profitable," he said.
Thorley pointed to increas-ed income from growth areas such as food, soft drinks and products such as Magners, which is not tied at many Punch pubs.
Licensees were not "being pushed" on rent reviews. Recent figures showed growth of 10% at the five-year review, down 2% on the year before.
Spirit Group, the managed arm of Punch Taverns, has seen like-for-like sales increase by 3.2% in the 32 weeks since it was acquired.
Punch revealed that 74 pubs have been converted to the leasing format from the Spirit estate.
The conversion rate is "accelerating as pubs are marketed and the processes are fully established".
The company is marketing around 460 of the 750 Spirit managed pubs it plans to convert.
Your CommentsElaine Taylor-Jones via email 15/09/2006"Just read that Giles Thorley thinks "profits are rising for Punch hosts" and that recent figures showed growth of 10% at the five year review.
As one of many Punch lessees struggling to pay the bills and see takings fall I would like to know if there are any Punch lessees out there making an increased 10% profit.
Profits are coming from food, soft drinks and all things not tied.
Doesn't that mean he's admitting his lessees can only make a profit on non-tied products?
"Unfortunately our pub sells mainly real ale and lager - no profit for us then!"
