Valley is in sights of Punch

Apr 24 2008 by zzgn3deploy, Evening Gazette

PUB operator Punch Taverns has revealed that Tees Valley is in its sights for future acquisitions, as it announced interim results today, but it also said a deal with rival group Mitchell & Butlers, which owns the Tall Ships in Hartlepool, was probably off.

Punch, which has about 80 pubs in the area, said in the 28 weeks to March 1, pre-tax profits before exceptional items increased by 1% to £133m, despite 9% shrinkage in its estate.

Although “difficult” trading conditions had forced it to reduce its estate, it said it was now ready to expand the portfolio again and that Tees Valley was in its sights.

Regional operations director Mark Chapman said: “We have divested sites that we thought had no long-term future. However, we are an acquisitive company and are looking at pubs with strong non-beer sales and food income.”

He said a deal with Mitchell & Butlers was unlikely, as “all communication is off at the moment”. The embattled group, which suffered losses of £274m following the collapse of a £5bn property deal in 2007, had received a £3.7bn merger proposal from Punch Taverns earlier this year.