In an interim update for the eight weeks to 13 July 2025, the pub group reported increased turnover and profit for the 40 weeks to 18 May 2025.
It also revealed further details of a successful refinancing, which saw the company issue £600m in senior secured notes and a £70m revolving credit facility.
For the 40 weeks to 18 May 2025, total revenue was £251.7m (2024: to £241.5m).
Both its leased & tenanted (L&T) and pub partnership (PP) segments delivered like-for-like underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) growth.
Underlying EBITDA for the pub estates before central costs increased by £9.1m to £98.7m.
Maturing profits
EBITDA for the period was £69.3m (2024: £63.2m) of which £71.2m was classed as underlying EBITDA.
Profit was driven by growth in the company’s like-for-like estate, inflationary price increases and trade enhancing capex investment.
It was boosted by maturing profits from pubs converted from L&T to PP, opportunistic acquisitions of single sites and small pub portfolios with 65 acquisitions completed since August 2022.
Punch, which is led by CEO Andy Spencer, also optimised its cost base and implemented a £5.1m cost saving plan in partnership with Deloitte.
During the period the group spent £17.1m on the acquisition of 29 pubs, and spent £27.1m on expansionary and maintenance capital.
Punch has identified the next tranche of pubs to convert to the Pub Partnership model, and is now in its eleventh year of progressively converting pubs across from L&T to PP.
Enhancing capex
Over the ten-year period to February 2024, 240 pubs were converted at an ROI of 33%, on average enhancing capex spend of £205k per pub.
Punch converted a further 11 pubs from L&T to PP in the quarter with approximately 40 pubs identified for conversion over the next 12 months.
Net proceeds from the sale of properties in the period was £8.4m.
On 5 June 2025, £640m of new senior secured notes were issued at 7.875% which expire 30 December 2030.
The existing revolving credit facility was also extended to £85m, with an expiry date of 30 June 2030.
On receipt of the proceeds of the new notes the revolving credit facility was repaid in full.
Some £365.4m of the existing notes were repaid on 30 June 2025, with the remaining £234.6m being repaid on 30 June 2025.
- This story was originally published in The Morning Advertiser’s sister publication MCA here.
