Punch on track thanks to World Cup and sunshine
BRITIAN’S biggest pubs firm Punch Tavern said it was on track to meet full-year expectations as trading was boosted by hot summer weather and the World Cup.
The company, which has over 7,100 pubs, said trading during the World Cup had been brisk, helping sales at pubs open for more than a year grow in recent weeks compared with the previous year.
Punch, which has net debt of £3.2bn, said it had seen a marked variation in seasonal trends with disappointing trading in the face of snow and cold weather in January more than offset by the benefit of good weather in May and June.
Punch said it was continuing to invest around £2m a month helping tenants struggling to cope with the impact of the recession, beer duty hikes and cheap booze offers in supermarkets.
Punch predominately operates tenanted pubs which are run by publicans who pay them rent and rely on them for beer supplies.
Average earnings per pub in the tenanted estate were down 5 percent in the year to date.
At pubs managed directly by the company, comparable sales were down 2.7 percent in the 44 weeks to June 26, an improvement on the 3.4 percent fall seen in the first 28 weeks.
The company said in statement: “We expect the trading outlook in the near term to continue to be uncertain.
“The tax rises and reduction in public spending announced in the recent budget will inevitably put further pressure on unemployment levels, reduce disposable incomes and constrain consumer confidence.
“Against this backdrop, we believe it is sensible to plan cautiously and have prepared our financial plans accordingly.