Punch Pubs Q1 revenues rise to £97.3m
The group’s three divisions – leased and tenanted, and managed partnership and laine – delivered like-for-like underlying EBITDA growth of 6% for the period
Punch Pubs has reported that its revenues 1.35% to £97.3m in the first quarter ended 1 December 2024.
It comes as the pub group spent £11m on the acquisition of 18 pubs, as well as a further £10.7m on expansionary and maintenance capital – which was 39% more than the year before.
On 25 September 2024, the group completed the acquisition of a 14 managed pub portfolio for about £9.1m including SDLT and fees. The deal was funded from available cash resources and drew on its revolving credit facility.
The newly-acquired portfolio has since been converted to the leased and tenanted operating format, with the expectation of converting approximately half of the sites to the management partnerships division over the next 18 months.
The group’s three divisions – leased and tenanted, and managed partnership and laine – delivered like-for-like underlying EBITDA growth of 6% for the period, as before central costs increased by £2.1m to £36.2m.
Having realised £4.3m from property disposals in the period, Punch Pubs’ property assets increased by £13.7m to £929.5m in the first quarter of FY25.
The group’s MAT EBITDA hit £92.6m in the first quarter, which Punch Pubs maintains will be further boosted by an additional £4.8m incremental EBITDA from the recent acquisition of 36 pubs in the second half of FY24 and the 18 pubs acquired in Q1 FY25.
According to the group, an additional £2.4m of run-rate cost saving efficiencies will be realised within the next 12 months – leading to an adjusted run-rate EBITDA of £99.8m.
The pub operator has been “encouraged” by trading in the second quarter so far, with profitability being ahead of the prior year.
Punch Pubs operates a drink-led community estate, which are managed by independent entrepreneurs as opposed to being fully managed. The group’s portfolio also has limited exposure to the high street, city centre and late-night markets, and does not operate pub brands – with each pub being individual.
