Punch Taverns plc 2011 Annual Report

Punch is a leading pub operator
of 5,000 leased and tenanted pubs
Following the recent strategic and operational review,
Punch has been fundamentally restructured. This culminated
in the demerger of the Spirit business on 1 August 2011,
and means that Punch now comprises 5,004 pubs,
of which 2,951 pubs are in the core division and 2,053
are in the turnaround division. Our focus is to continue
to develop Punch’s positioning to drive long-term value.
KPIs*
EBITDA £m
Profit before tax £m
Basic earnings per share p
290.8
257.7
89.8
76.3
9.9
8.6
2010 2011
2010 2011
2010 2011
Highlights
Underlying financial performance*
– in line with market expectations
n EBITDA of £258m (2010: £291m)
n Profit before tax of £76m
(2010: £90m)
n Basic earnings per share of 8.6p
(2010: 9.9p)
n Operating cash flow of £202m
n £113m of cash reserves
(at 7 October 2011)
held outside the securitisations
n Net assets of £202m
(31p per share)
Operational
highlights*
n First growth in average net
income** per pub (+0.9%)
for three years
Continued momentum
in our core division
n £78,000 average net income
per pub
n Core estate like-for-like
net income** -2.1%
(2010: -5.1%)
Asset disposals on track
in our turnaround division
n Disposal proceeds of £108m
from the Punch leased estate,
£3m ahead of book value and
at a multiple of 27 times EBITDA
Capital structure –
ongoing progress
n Gross Punch debt reduced
by £133m (5%)
n Pub estate valued at £2,832m,
(£568m above net debt***)
n Reviewing options to optimise
the capital structure and downsize
the estate effectively
Statutory results
n Loss after non-underlying items
of £359m
n Non-underlying items include
asset writedowns of £377m
n Loss on discontinued operations
of £508m
n Basic loss per share after
non-underlying items of 134.8p
* before non-underlying items and
discontinued operations
** net income represents revenue
less cost of drink sales (gross profit)
*** par value of net debt