Further enhanced estate quality, strong performance, continued growth.

Punch Taverns plc, the UK’s leading operator of over 9,200 pubs, today announces preliminary results for the 52 weeks ended 19 August 2006.

Highlights

Financial Results (before non-recurring and exceptional items)

• Group revenue up 101% to £1.5 billion  (2005: £770 million)
  
• EBITDA increased by 47% to £606 million  (2005: £414 million)
  
• Profit before tax up 21% to £250 million (2005: £207 million)
  
• Basic earnings per share up 13% to 74.9p (2005: 66.4p)
  
• Proposed final dividend of 9.0p, bringing the total dividend for the year to 13.4p, representing an increase of 19%  (2005: 11.3p)

Financial Results (after non-recurring and exceptional items)

• Profit before tax up 48% to £281 million (2005: £191 million)
  
• Basic earnings per share up 63% to 94.9p (2005: 58.1p)

Operational

• Continued growth in the leased estate (7,846 pubs as at 19 August 2006)
  - Like for like revenue growth +1.0%
  - 96 quality pubs acquired, 551 non core pubs sold
  - Investment continued with £78 million spent on enhancing over 950 pubs
  
• 32 week contribution from the Spirit managed estate (1,410 pubs as at 19 August 2006)
  - Like for like revenue growth +3.6%, core estate +6.0%
  
• Creation of managed estate of the highest quality
  - Disposal plans largely complete – 389 pubs now sold
  - Transfer to lease programme on track with 155 conversions completed and a further 175 agreed
  - Acquisition of 82 pubs from Mill House Inns for £164 million (completed 14 September 2006)
  
• Trading in the current year is in line with expectations

Giles Thorley, Chief Executive of Punch Taverns plc, commented:

“This has been a year of excellent progress for the Group in which we have consolidated further our position as the UK’s premier pub company whilst maintaining the flexibility to maximise future returns for shareholders. 

“The shape and quality of our leased and managed estates has never been better.  We continue to see further opportunities to both invest in and add to our estates whilst at the same time managing our programmes of conversion and disposal. 

“The results for the twelve months showed strong growth and trading in the current year has started well.”

9 November 2006

Enquiries:

Punch Taverns plc	Today: 020 7457 2020
Giles Thorley, Chief Executive	Thereafter: 020 7255 4002
Robert McDonald, Finance Director
College Hill	Tel: 020 7457 2020
Justine Warren
Matthew Smallwood

Ends