Punch Taverns PLC Punch Taverns PLC Second Quarter Trading Update (7511Z)
March 12 2013 - 3:00AM
UK Regulatory
TIDMPUB
RNS Number : 7511Z
Punch Taverns PLC
12 March 2013
PUNCH TAVERNS PLC
Second Quarter Trading Update for the 12 weeks to 2 March
2013
ON TRACK TO MEET OUR FULL YEAR PROFIT EXPECTATIONS
n Profit performance in line with management expectations
n Improving like-for-like trends in net income
n Core estate at 94% let, up from 91% at March 2012
n 270 core investments completed in the half year at an average
spend of c.GBP100k per pub
n Punch Buying Club membership increased to 3,300 Partners
(March 2012: 2,200)
n GBP55m of disposal proceeds in the half year, above book value
and slightly ahead of expectations
Trading across the quarter has been in line with our
expectations despite January trading being adversely impacted by
weather. Like-for-like net income showed improvement in the second
quarter, being down 3.5% in the core estate compared to a decrease
of 5.2% for the first quarter.
We expect that the second half of the year will benefit from the
recent improvements we have made in the areas of letting,
investment, food development and increased field team support and
we remain on track to meet our full year profit expectations.
Progress on delivering our key strategic initiatives
The percentage of core pubs on substantive agreements remains
strong at 94% and is in line with our target of having between 93%
and 95% of the core estate on substantive agreements. The launch of
the new Partner recruitment website has been extremely well
received having attracted c.1,200 enquiries in the last 3 months,
helping support a further 10% growth in applicant numbers.
The increased level of activity in pub investment seen in the
final quarter of 2012 has continued into the first half of this
year and we have invested in 270 core pubs at an average spend of
c.GBP100k per pub. This investment is transforming the customer
offer in these pubs and the associated trading uplift is expected
in the second half of the year. We also benefited from a shift
towards food which is now estimated to make up 25% of Partner
revenue across the core estate, up 2.4% pts from March 2012.
We have increased the size of our specialist field team support
including the introduction of new franchise management and pub
launch management teams. These teams provide dedicated support to
help new Partners launch their businesses in the best possible way.
The feedback received from Partners who have benefited from this
new resource has been extremely positive and we are confident that
increased support in this area will result in improved trading
performance for both our Partners and for Punch.
Disposal programme on track
The disposal programme is slightly ahead of our target to
realise GBP105m of net proceeds in the current financial year.
During the half year we have sold 164 pubs (including 21 pubs from
the core estate), together with other assets for proceeds of GBP55
million, slightly ahead of book value and at a multiple of 18 times
EBITDA.
Capital structure review
Since announcing the restructuring proposal on 7 February 2013
we have made positive progress in engaging with the many
stakeholders who will need to approve the restructuring
proposal.
On the basis of the ongoing dialogue with stakeholders, the
Board continues to believe that a consensual restructuring will be
launched in the first half of 2013.
Stephen Billingham, Executive Chairman of Punch Taverns plc,
commented:
"Our profit performance for the first half of the year has been
in line with management expectations, with improving trends in the
underlying business.
We have strong plans in place to return the core estate to
growth in the medium-term. We expect to make further progress in
the second half of the financial year and are on track to meet our
full year profit expectations.
We are encouraged by the progress we are making in our
discussions with stakeholders on our capital restructuring proposal
and believe a consensual restructuring can be launched in the first
half of 2013."
- Ends -
ENQUIRIES;
Punch Taverns plc Tel: 01283 501 948
Stephen Billingham, Executive Chairman
Steve Dando, Finance Director
Brunswick Group LLP Tel: 0207 404 5959
Jonathan Glass
Sophie Brand
Conference call
There will be a conference call for analysts and stakeholders
at 9.00am today on:
+44 (0) 1452 541 003, Conference ID 22062206.
The title of the call is Punch Taverns Trading Statement.
A replay of the call will be available by calling:
+44 (0) 1452 550 000. Access code 22062206#.
Forward-looking statements
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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