Punch profits drop as estate clearout goes on

ONE of the UK’s largest pub owners yesterday revealed a 20 per cent drop in profits as the consumer spending slump continues to squeeze the business.

Punch Taverns – which has some 4,800 leased pubs, including the Pollock Inn in Glasgow and Utopia in Edinburgh – saw profits in the 28 weeks to 3 March fall by £8 million to £33m as like-for-like net income in its core estate dipped 2.1 per cent. However, the group said the decline in income was driven by pubs which were returned to the group after failing and have been placed under temporary management, with the majority of the estate performing well.

Punch, which is in the middle of a turnaround plan that involves selling its 2,000 worst-performing sites, said it was on track to close between 400 and 500 outlets this financial year.