The group saw:
- Average profit per pub1 across the entire estate up 4%; benefiting from the disposal of non-core pubs
- Core estate like-for-like net income2 growth of 1.0%
- Underlying EBITDA of £178 million (August 2015: £196 million); reflecting the impact of £324 million of strategic disposals completed over the last 24 months
- Underlying profit before tax of £53 million (August 2015: £61 million)
- Profit before tax of £60 million (August 2015: loss of £105 million)
Punch’s Mercury division, which numbers just under 700 pubs, generated revenue of £48m and EBITDA of £20m.
Mercury, run by Paul Pavli, who previously ran Punch’s new business division, was created earlier this year and replaces Punch’s turnaround division and aims to deliver like-for-like growth by 2017.
The business is also growing its managed retail division, which currently stands at 109 trading pubs.
Duncan Garrood, chief executive officer of Punch Taverns, 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.
“We have made good progress towards delivering on the strategy we set out in November 2015. In particular the roll-out of our Retail division is progressing well and we are accelerating the roll-out to c.150 pubs per year.
“The new Pubs Code Regulations has resulted in us having to remarket all lets in line with the new regulatory requirements. While this is impacting letting activity in the short term, our expectations for the longer-term growth prospects for the business remain unchanged.
“Punch has a clear plan for the future, a strategy that is progressing well, and a unique operating model that is expected to drive improved performance over the coming years.”