Pub chain could sell 15% of estate
PUNCH Taverns is considering selling more than 15% of its 8,300-strong estate - but its 80-plus pubs in Tees Valley will be safe.
The pub operator, which revealed falling profits and earnings in its interim results today, said it was parceling off 1,250 under-performing pubs for divestment as the grip of recession tightened.
In the 28 weeks to March 7, earnings before interest, tax, depreciation and amortisation fell 14.9% to £275m compared with the same period in 2008, while pre-tax profits dropped by 38.3% to £82m.
Along with the rest of the pub industry, Punch has been hit by the Government’s 2% hike in alcohol duty, which has left pub operators up in arms.
The company said it would have to pass on the rise to customers - unlike value chain Wetherspoons, which is freezing drinks prices for at least four months.
Regional operations director, David Wigham, said: “We would have liked to see a freeze on the tax,” he said. “Pubs are very important for our economy and part of the social fabric of the country.”
He said that even in times of recession, the pub was still “an affordable luxury” - but consumers were demanding more than just a good pint. The company will focus on driving up its non-drink sales and introducing extras such as Wi-Fi internet access in its pubs.
