Punch Pubs & Co has announced it is on track to surpass £100 million in underlying EBITDA for the current financial year, driven by robust trading performance and continued investment across its estate.
The Staffordshire-based pub operator, which manages a diverse portfolio of 1,264 pubs nationwide, released a trading update for the 28-week period ending 23 February 2025. The group reported total revenue of £168.3 million, showing a modest increase from £165.1 million over the same period last year. Net cash inflow also remained steady, rising slightly to £44 million from £43.3 million in 2024.
Operational Growth Across All Divisions
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £46.9 million—up from £43.2 million in the previous year—with each of the company’s divisions performing well, including its Leased and Tenanted arm, Management Partnership model, and its Laine Pub Company segment. Total EBITDA for the period stood at £45.9 million.
Strong trading momentum continued into the following eight weeks, ending 20 April 2025, with EBITDA up by 10% compared to the same period last year—representing an increase of £1.4 million.
Strategic Investments and Estate Enhancements
The positive performance has been attributed to a combination of strategic initiatives, including inflationary pricing adjustments, targeted capital investment, pub acquisitions, and the transition of several sites from leased and tenanted agreements into Punch’s growing managed partnership format.
The company expects these efforts to lift group profitability from £94.8 million in underlying EBITDA for the 12 months to February 2025 to a projected pro forma run rate of £111 million.
A key driver in this forecast is the continued expansion of its managed partnership estate. Eighteen pubs were converted into the model during the reporting period, and a further 37 are earmarked for conversion over the coming year.
Estate Development and Property Value Growth
Punch Pubs & Co also bolstered its estate through the acquisition of 20 new sites during the 28-week period, representing an investment of £12.5 million. An additional £17.3 million was allocated to refurbishments and estate maintenance—up from £13.3 million in the prior year.
In a notable transaction last month, the group added four pubs to its portfolio through the purchase of sites previously owned by Leicester-based Everards.
The value of the company’s property assets has also increased significantly. A full estate revaluation conducted by Savills saw the portfolio valued at £992 million. During the same period, Punch generated £7.7 million through pub disposals.
At the end of the reporting period, the group reported strong liquidity, with £74 million in available funds—comprised of £3.7 million in cash, £37 million in unused credit facilities, and £33.3 million in accessible reserves.