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Punch feels the pinch
25.08.09
Pub group Punch Taverns today warned there is little prospect of business improving soon as recession-hit drinkers curb spending.
Finance director Phil Dutton said: “We are still in the middle of a recession and I don't see that recession ending this side of Christmas. There will be a soft recovery and I don't see spending power escalating in the near term so we remain cautious.”
He also said the poor weather for much of the summer was not helping.
“For the beer gardens to thrive and generate good business the sun needs to shine,” said Dutton. “But the parasols have been more like umbrellas than sunshades.”
The firm, which has more than 7500 pubs, said it will still meet City forecasts for the financial year which ended last Saturday.
Analysts are expecting profits of £160 million against £262.3 million the previous year.
Punch, headed by chief executive Giles Thorley, sold some 800 pubs for £400 million over the 12 months and raised £375 million through a deeply discounted rights issue. It helped cut Punch's debts of more than £4 billion by £1 billion.
