Net debt reduced by over £1 billion; early action taken to address market conditions

Financial Performance*

• Results in line with expectations
• EBITDA of £514 million (2008: £623 million)
• Profit before tax of £160 million (2008: £262 million)
• Strong cash flow before financing of £479 million
• Disposals of £414 million comprised largely of non-core assets.  Disposals are earnings accretive after retiring Group debt
• Basic earnings per share of 36.1p (2008: 69.9p)
• Net Asset Value per share of 260p, post impairments

Statutory Results (after exceptional items) **

• Loss after exceptional items of £176 million following a net exceptional charge of £290 million. All of the exceptional charges were non-cash except for £8 million of reorganisation charges
• Exceptional items include a £663 million charge for pub impairments to appropriately value the estate

Management Actions and Priorities delivered in 2009

• Strengthened operational management teams
• Stabilised operating performance
• Improved cash flow
• Reduced debt levels

Capital Structure

• £375m gross capital raising
• Net debt reduced by £1,066 million (24%)
• Outstanding securitised debt has a 18 year average maturity and weighted average cost of 6.8%
• Debt repayments have helped maintain headroom against financial covenants
• Met the restricted payment condition within both the Punch A and Punch B securitisations during the financial year
• Continue to make good progress with the disposal programme and realising value from our assets held outside of the securitisation structures

*  before exceptional items
** full analysis of exceptional items are shown in note 3 to the Financial Statements 

Giles Thorley, Chief Executive of Punch Taverns plc, commented
 
“Our swift action has reduced the company’s net debt by over £1 billion during the year, as we’ve heeded the challenges facing the economy and the industry.  We have strengthened our operational management team; raised equity from our shareholders; stabilised the operating performance and improved significantly our cash flow.  We are now shaping the business to deliver a return to long-term sustainable growth and value.

The trading environment remains challenging and lacks visibility, hence we remain cautious despite the measures undertaken. We are nevertheless confident that the significant progress we are making positions us well for the longer-term opportunities in the sector”

Punch Taverns plc	Today: 020 7360 4900
Giles Thorley, Chief Executive	Thereafter: 020 7255 4002
Phil Dutton, Finance Director
Smithfield Group	Tel: 020 7360 4900
John Kiely
Alex Simmons