Interim management statement for the 16 weeks to 11 December 2010

HIGHLIGHTS

• Improved trading momentum delivered in Q4 has continued
• Good sales growth in Managed
• Improving trends in Leased
• On track to meet our full year expectations
• Comprehensive review of the business in progress

MANAGED

• Like for like sales growth 2.2%
  • Drinks sales growth 1.7%
  • Food sales growth 2.6%

Our sales performance has continued to progress well, despite a c.1% impact from weather-affected trading over the last 2 weeks of the reported period. Our pub investment programme continues apace with 92 refurbishments completed in the period, delivering returns in line with our expectations. We have focused our activities on accelerating the refurbishment of our Chef & Brewer and Fayre & Square formats where guest feedback has been particularly strong.

LEASED

• Total Estate like for like EBITDA decline 8.7%
  • Core estate like for like EBITDA decline 7.3%
  • Non-core estate like for like EBITDA decline 21.8%
• Average EBITDA per pub decline 1.7%

The average EBITDA per pub declined by 1.7%, reflecting disposals within the non-core estate. Our Pathway to Partnership programme has started to deliver benefits with the rate of like for like EBITDA decline improving in the period, despite the impact of poor weather over the last 2 reported weeks. Financial support for our partners has stabilised at just under £2 million per month, having been at this level for more than 12 months.

BALANCE SHEET

• Disposal proceeds of £40 million comprised largely of non-core assets achieved at an average multiple of 25 times EBITDA.
• £274 million of cash and bonds held at the Group level

Ian Dyson, Chief Executive Officer of Punch Taverns plc, commented

“The actions taken to strengthen both the Leased and Managed businesses have resulted in an improved trading performance in the first 16 weeks of the financial year. We are now looking to build on this momentum by focusing on further operational improvement across the business.

Meanwhile, my review of our strategy, operating performance and capital structure is progressing and I expect to give an update in the first quarter of 2011.”

ENQUIRIES;

Punch Taverns plc Tel: 020 7255 4000
Ian Dyson, Chief Executive 
Phil Dutton, Finance Director
 
Brunswick Group LLP Tel: 0207 404 5959
Mike Smith
Catherine Hicks
Nina Coad  

Analyst and Investor Conference Call

There will be a conference call for analysts and investors at 8.30am GMT today, on the following dial in number: +44 (0) 1452 541 076 or UK Free Call 0800 073 1807.
Conference ID 32016603.