Pub Punch Q2 revenues hit £158m
The group’s £37.5m EBITDA was slightly less than last year’s results, which benefited from reduced VAT rates and lower energy costs
Punch Pubs has recently reported revenues of £158.1m for the 28 weeks ended February 2023, compared to £142.6m for the same period last year.
Earnings before taxes for the group were £37.5m, slightly less than the £38.6m reported the previous year. Punch Pubs has said that last year’s results benefited from the temporary reduced rate for VAT on food and non-alcoholic drinks and lower energy costs.
All three divisions (Leased and Tenanted, Management Partnership and Laine) delivered like-for-like sales growth for the 28 week period when compared to the prior year, with the Leased and Tenanted division also delivering growth in like-for- like rental income.
In Q2 the group spent £16.7m on expansionary and maintenance capital, which included five transformational investments in converting pubs from Leased and Tenanted over to its Management Partnerships estate and acquiring a brewery to expand its beer production capacity at Laine.
Regarding the results, the group said: “Despite the significant increase in energy costs, we still expect to achieve a stabilised return on investment in excess of 20% on these investments.”
Property assets increased by £7.9m in the period to £903.4m, compared to £895.5 the previous year. The Group’s policy is to revalue its properties on a five-year rolling basis, 20% of the estate was valued by Savills Limited, independent chartered surveyors for the year ended 14 August 2022, a further 20% of the estate will be revalued for the year ending 13 August 2023.
