FULL YEAR PROFITS IN LINE WITH MANAGEMENT EXPECTATIONS
Punch completed its 52 week financial year on 20 August 2016 and expects to issue its full year results for the same period on 8 November 2016.
Performance in line with management expectations:
- Continued growth from a higher quality pub estate:
- Average profit per pub across the entire estate up c.4%
- Core estate like-for-like net income* growth of 1.0%
- Retail division operating ahead of expectations:
- 177 pubs identified to operate under the Retail contract, with 97 pubs trading or in progress of conversion at 20 August 2016
- Pub roll-out plans accelerated to c.150 pubs per year (up from previous guidance of 100-120 pubs per year)
Strengthened balance sheet:
- Nominal net debt reduced by approximately £225 million (16% reduction in the year)
- Nominal net debt to EBITDA leverage reduced to c.6.6 times (August 2015: 7.2 times)
- Property estate externally valued by GVA at c.£2,030 million; c.£850 million in excess of nominal net debt. The 2016 property valuation represents a net uplift of approximately £40 million on the prior year valuation, after accounting for pub disposals.
- Net nominal debt to property valuation reduced to 58% (August 2015: 64%)
- Strategic disposal programme is now complete, having delivered ahead of expectations:
- 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)
Duncan Garrood, Chief Executive Officer of Punch Taverns plc, commented:
“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.”
31 August 2016
* Core estate like-for-like net income represents revenue less cost of drink sales (gross profit) for all pubs in the Core estate other than those transferred to the Retail division.
Punch Taverns plc — Tel: 01283 501 948
Duncan Garrood, Chief Executive Officer
Steve Dando, Chief Financial Officer
Brunswick Group LLP — Tel: 0207 404 5959
Inside information and forward-looking statements
This announcement contains inside information.
This announcement may contain certain statements about the future outlook for Punch. Although we believe our expectations are based on reasonable assumptions, any statements about future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.