Punch Taverns plc 2011 Annual Report

Punch Taverns plc
Annual Report and Financial Statements 2011
99
32 Related party transactions continued
Transactions with joint ventures
Punch Taverns (PGE) Limited, a wholly owned subsidiary of the Company, holds 50% of the entire issued share capital of
Matthew Clark (Holdings) Limited, the holding company of the Matthew Clark group of companies. The Group’s investment in
this joint venture at 20 August 2011 is £43.1m (August 2010: £47.0m). The Group had transactions of £14.5m with Matthew Clark
during the 52 weeks to 20 August 2011 (52 weeks to 21 August 2010: £17.4m) and there was £2.0m owing to Matthew Clark at
20 August 2011 (August 2010: £4.1m).
During the period, the Group has paid invoices and raised sales invoices on behalf of Allied Kunick Entertainments Limited, a joint
venture that was owned indirectly by the Company up to the point of the demerger of the Spirit business, at which point this joint
venture was no longer part of the Group. These invoices were recharged via an intercompany account. At the prior period end,
the Group owed Allied Kunick Entertainments Limited £0.5m.
Year-end balances arising from transactions with joint ventures
20 August
2011
£m
21 August
2010
£m
Unsecured loan stock receivable – 10.6
Amounts owed to joint ventures (2.0) (4.6)
Total amounts due from joint ventures (2.0) 6.0
Transactions with the Spirit business post demerger
On 1 August 2011 the Spirit business was demerged from the Punch Group. The results of the managed segment of that business
until 1 August 2011 have been classified as discontinued operations and are summarised in note 9. The results of the leased segment
have been classified as non-underlying, as they do not meet the definition of discontinued operations within IFRS 5, and are
summarised in note 6.
Following the demerger, the Punch Group will continue to provide system support for the Spirit leased business as part of an existing
Management Services Agreement for a short period of time. In return, the Group will receive a recharge of an element of support costs.
As at the period end date, the Group had charged £0.2m in respect of these services.
Governance Business review
Year end balances arising from transactions with the Spirit business
20 August
2011
£m
Amounts owed by the Spirit business 6.4
Amounts owing to the Spirit business (0.4)
6.0
In addition, in order to satisfy future share scheme awards, the Group is holding 17,750,978 Spirit Pub Company plc shares,
representing 2.69% of the issued share capital at 20 August 2011. These have a fair value at the year end date of £7.4m.
During the current period, the Pubmaster Pension Scheme has taken a charge over the Group’s main office building following the
demerger. Neither the Group nor the Company have had any further transactions with the pension scheme during the current or
prior period, other than those disclosed in note 29.
Financial statements