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