Punch has increased its expansion plans for its retail division, with 150 pubs a year now expected to be converted.
The company this morning gave an update on its full-year to 20 August, saying like-for-like net income in its core estate (excluding the retail division) was up 1%. It said average profit per pub across the estate was up 4%.
The company said its retail division had performed ahead of expectation with 177 pubs now identified to operate under the retail contract and 97 pubs currently trading or being converted as of 20 August.
As a result pub roll-out plans have been accelerated to c.150 pubs per year (up from previous guidance of 100-120 pubs per year).
Punch said its strategic disposal programme was now complete, having delivered ahead of expectations. It included:
- · c.£83 million - individual property and land sales
- · £53 million - package disposal of non-core pubs (previously announced)
- · £99 million - disposal of 50% holding in Matthew Clark (previously announced)
The group also reported nominal net debt reduced by approximately £225m (16% reduction in the year) and nominal net debt to EBITDA leverage reduced to c.6.6 times (August 2015: 7.2 times).
Punch said the estate had been externally valued by GVA at c.£2.3bn; c.£850m in excess of nominal net debt. The 2016 property valuation represents a net uplift of approximately £40m on the prior year valuation, after accounting for pub disposals.
Net nominal debt to property valuation reduced to 58% (August 2015: 64%)
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 c.150 pubs per year.
“I look forward to updating the market fully when we present our full set of results on 8 November.”
