Punch Taverns sales rise with demerger on track

The company, which has over 6,500 pubs, said sales at its managed pubs open more than a year rose by 7.3 per cent in the 12 weeks to May 28.

Punch, whose brands include Chef and Brewer, Fayre and Square and Flaming Grill, said food sales at its managed pubs were up 8.4 per cent over the period with drink sales up 7.3 per cent.

Average net income at Punch’s tenanted pubs rose by 1.3 per cent during the period.

Tenanted pubs are run by publicans who pay the company rent and rely on it for their beer supplies. Managed pubs, which have fared best during the recession, are run directly by the company and generally have greater freedom on pricing.

Punch said it was on track to meet full year expectations despite a challenging trading environment.

Punch last month announced it intended to demerge Spirit as part of plans to reduce its crippling £3bn debt pile. It built up its debt by making a series of highly leveraged acquisitions during the credit boom including the £2.7bn acquisition of Spirit in 2005.