Punch Taverns this morning reported profit before tax, exceptionals and amortisation up 28% to £207m for the year to 20 August.
The group attributed the better than expected figures to continued organic growth and the acquisition and completed integration of InnSpired, bought in September 2004, and Avebury, acquired in August.
The acquisitions added a further 880 leased and tenanted outlets to the group’s estate. During the year the group completed the purchase of 106 individual sites and sold 93 pubs, mostly for alternative use. At the financial year end the group had an estate of 8,227 pubs, prior to the sale of 45 pubs to Admiral Taverns on 8 September.
The company, which is currently linked to a potential bid for Spirit Group, saw group turnover up 21% to £770m, with like-for-like turnover up 2.5%. Ebitda before exceptional items increased by 21% to £412m, with like-for-like pub profit up 2.5%. Average Ebitda per pub in the original estate was up 4%.
The group described current trading as "satisfactory" and "in line with expectations".
Giles Thorley, the company’s chief executive, said: "We are continuing to focus on supporting our retailers to build their businesses and remain well placed to acquire further quality pubs through piecemeal and innovative corporate acquisitions."
The group pointed to the performance of the former Pubmaster estate, acquired in December 2003, which saw Ebitda per pub grow by 7.6% in the year, as an example of its successful strategy.
On 1 August Punch completed the restructuring of part of its securitised debt which refinanced the acquisitions of Pubmaster and InnSpired onto improved terms and raised additional cash, some of which has since been used in the acquisition of Avebury.
The group’s core business is now entirely funded by long term, securitised, fixed rate debt, whilst cash and further debt facilities are available for acquisition opportunities.
