Punch Taverns given a World Cup tonic

Punch Taverns posted its first like-for-like sales growth since early 2009 across its managed pubs, helping sales declines for the 44 weeks to June 26 ease to 2.7 per cent against 3.4 per cent after 28 weeks.

But the England team crashed out of the competition a day after the end of the trading period, cutting short the sales cheer for landlords

hoping the national team could go all the way.

And Punch – which has more than 7,100 pubs – also continues to take a cautious view of prospects following Chancellor George Osborne's emergency Budget clampdown.

"The tax rises and reduction in public spending announced in the recent budget will inevitably put further pressure on unemployment levels, reduce disposable incomes and constrain consumer confidence," the company said.

The firm welcomed Mr Osborne's decision to scrap the previous

Government's 10 per cent hike on cider duty, but was "disappointed" that the above-inflation rises planned on beer duty remain in place.

Punch also warned the VAT hike to 20 per cent looming in January "will put further unnecessary pressure on the pub trade" and hoped the

measure would be "rebalanced in the future".

Meanwhile, plans to invest in 800 pubs across its tenanted estate by the year end are on track and support to struggling landlords remains stable at 2m a month, although a squeeze on drinks margins has kept profits under pressure.

Punch's net debt now stands at 3.2bn, helped by disposals expected to generate 300m over the full year. The group has reduced debt by 664m since the start of the financial year.

Seymour Pierce analyst Hugh-Guy Lorriman said the tone of the

statement "is more positive than has been the case for Punch over the last two years".

But he warned: "Looking in more detail at the statement we do not

believe the underlying long term trend has moved into the growth momentum that the business needs to provide sustainable growth in value for equity holders."

Former Marks & Spencer finance director Ian Dyson joins the firm as its new chief executive in September, replacing Giles Thorley.