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433 pubs sold off by Punch last year

03 | 09 | 13

Punch Taverns has sold 433 pubs in the last year, according to year end trading results.

In the 52 weeks up to August 17th 2013, Punch sold the pubs "ahead of book value" and 18 times more than earnings before interest, taxes, depreciation, rentals and amortisation (EBITDRA) - 60 of these were sold from the company's core division.

In total, Punch states the pubs went for £149 million.

The fact that these pubs were traded off may be of interest to those in the commercial catering equipment sector, as it means 433 businesses have been purchased and may be in development elsewhere.

Despite selling off locations, Punch is reporting a like-for-like increase of 0.4 per cent for the last three months.

The company has experienced an average net income increase of 1.5 per cent for each pub in the 52 week period. In the fourth quarter of this timeframe, net profit for the core estate was up 0.4 per cent, compared to the overall decline of -2.4 per cent. Overall profits were in keeping with management predictions.

It also stated 96 per cent of the core estate is now let on substantive agreements, an improvement from 94 per cent in August last year.

Punch reports it is "maximising value from non-core assets". It has transferred 116 locations into the core division. As of August 18th, there are 2,990 core pubs and 1,106 non-core establishments.

Executive chairman for Punch Taverns Stephen Billingham said: "Our profit performance for the year has been in line with management expectations. We are encouraged by our first quarter of net income growth since demerger, and we reiterate our previous expectations of net income growth in the core estate for the years ahead."

The company is also crediting success to its new partner recruitment website, which helped to increase the rate of letting. It has remained at or above its letting targets throughout the trading year.ADNFCR-16001031-ID-801632997-ADNFCR

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