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Pub giant set for good results

By Burton Mail  |  Posted: February 28, 2014

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A PUB giant based in Burton has reported signs of growth in its latest set of financial results.

Punch Taverns, in Centrum 100, revealed that trading had continued to fall in line with expectations, and like-for-like net income for the half year is expected to be broadly in line with 1.5 per cent growth.

Management expectations for the full year remain unchanged, with its main estate expected to deliver like-for-like net income growth of up to one per cent.

The firm is also pressing ahead with plans for more talks over its future after a plan to restructure its finances collapsed earlier in the year, after it did not receive the backing of investors.

Stephen Billingham, executive chairman of Punch Taverns, said: “We are convinced that a consensual restructuring is by far the best outcome for all stakeholders, and we will continue to work with all stakeholders to reach a consensus on the restructuring.

“No-one can be in any doubt about the consequences of failing to agree a consensual deal.

“We call on all parties to work together constructively to agree a restructuring. Everyone has something to gain by agreeing a restructuring that will retain the material financial synergies and provide certainty and stability for the business from which all stakeholders will benefit.”

A new deadline of April 15 has been set for the firm to try to agree a consensual restructuring that would secure its future, as well as hundreds of jobs in Burton and thousands across the UK.

A spokesman for the firm said: “The board remains of the view that a consensual restructuring is in the best interests of all stakeholders.

“In the absence of a consensual restructuring, failure would result in a default.

“Moreover, failure to effect a restructuring in the near-term will lead to a default, which is expected to have a material negative impact and disruption to the business. As a result, it is in the interests of all parties to agree a consensual restructuring.”

The firm’s pub investment scheme and disposal of underperforming pubs remains on track, with investment expected to total £45 million and disposal efforts anticipated to bring in £100 million.

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