Punch hit by poor summer
Punch has announced it expects profits to be down by as much as 3% on expectations because of the dismal summer weather but says the smoking ban has had no detectable impact on trade.
Britain's biggest pub company said the 'un-seasonal' weather in the early summer had taken its toll on takings.
The smoking ban is now in place across the whole of our estate, having been introduced in England on 1 July. No significant impact has been detected so far A Punch statement.
A statement released today ahead of the company's full year trading report said: "Trading during the year has been in line with Board expectations with the exception of a period during early summer when unprecedented poor weather and flooding affected the trading opportunity for many pubs.
"Whilst trading levels have returned to normal, this un-seasonal weather impacted results and we now anticipate pre-tax profits for the full year to be around 2-3 percent less than previous Board expectations."
However, there was good news for its leased estate where purchases and disposals saw average profit per pub rise by 10%.
The statement said: "The leased business, which comprised 7,561 pubs at the year end, continues to perform well with like for like profits up 2.7% across the year.
"The quality of the estate was significantly improved by the conversion of 637 former managed pubs from the Spirit estate, the acquisition of 85 individual pubs, and the disposal of 933 pubs in the year of which 869 were sold to Admiral Taverns in May 2007. "Consequently, the average profitability of leased pubs in our estate
increased by over 10% during the year."
"Our managed estate, acquired with the acquisition of Spirit Group in January 2006 and added to this financial year with the acquisition of Mill House Inns in September 2006, comprised 887 pubs at the year end and has also performed well.
"Sales in the like for like core managed estate increased by 3.5% across the year. The disposal and lease conversion programmes are now complete and any further estate changes will take place through the normal course of business, so that the remaining high quality Spirit business is fully focused in its key operating divisions."
"The smoking ban is now in place across the whole of our estate, having been introduced in England on 1 July. No significant impact has been detected so far.
"The ban has been in existence in Scotland for over a year and has been accepted very rapidly by our customers without major disruption to our trade.
Giles Thorley, chief executive of Punch Taverns, said: "We have made excellent progress in a period of considerable operational change during which time our pubs have continued to trade well. Looking forward, our estate has never been in better shape and remains well placed to capitalise upon the various opportunities open to us. We remain confident about the future prospects for the Group."
In addition, Punch has today announced that Robert McDonald is retiring as Finance Director. He will be replaced by Phil Dutton.
Punch Taverns completed its financial year on 18 August 2007 and expects to announce full year results on Thursday 8 November 2007.
