A BURTON based pub giant has announced a restructuring plan which it hopes will save the business millions of pounds and release cash for investment.
Punch Taverns, based in Centrum 100, has revealed that it had completed a detailed review of the group’s capital structure.
The proposals include plans to use cash resources from within the firm to remove some of the debt that is currently crippling the company.
This will result in a £463 million debt reduction over the next five years.
Stephen Billingham, executive chairman of Punch Taverns, said: “Following extensive stakeholder discussions, we are now able to set out the key terms of restructuring proposals that we believe will deliver value to all stakeholders and can be successfully implemented.
“In the short term this will reduce debt by £200 million, will provide a platform for the business to grow and for a multi million pound investment in our pubs over five years.
“This is not the end of the story but this is the start of some big steps for the firm.
“This is positive statement and one that we wish to build on.
“It is great news for everyone out our Burton headquarters as it shows we have a clear plan for growing the company. We are all excited over what is to come.”
This move will allow Punch to spearhead a growth scheme as well as creating a ‘sustainable capital structure’ for its highly profitable pub business which delivered £225 million of underlying operating profit and £312 million of cash generation before debt in the last financial year.
The proposals will also provide a platform for it to continue its business plan, including a £220 million pub investment and the disposal of £435 million of assets.