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