Punch profit hit by cash aid for landlords

The UK's biggest pub group yesterday revealed a 20 per cent slump in half-year profits as it stepped up efforts to help struggling landlords with £2m a month in support.
By The Newsroom
Published 22nd Apr 2010, 23:17 BST
Updated 22nd Apr 2010, 23:17 BST

Punch Taverns, which has more than 7,100 pubs across the UK, posted underlying pre-tax profits of 66m in the six months to March 6 – down from 82m a year earlier.

It said financial aid for beleaguered pub landlords had been upped by 400,000 a month from an average of 1.6m a month last year, which impacted earnings.

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The entire sector has been affected by a slump in consumer spending and increases in alcohol duty, with the Government's recent 3.5m offered in support to community pubs paling in comparison to cash pumped in by the industry, according to Punch.

But the group said it had received an Easter boost since the end of the first half, with trading over the long holiday weekend "good and slightly ahead of last year" in the managed estate.

The group added: "While we remain on track to meet our expectations for the full financial year we are mindful that market conditions remain challenging and are likely to continue to be so for the near-term."

Punch has the added headache of a search for a new chief executive after recently shocking the market with news its boss is to stand down after nine years with the group.

Giles Thorley announced his departure plans late last month.

Related topics:Government