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 />
03<br />
Chief Executive Officer’s statement<br />
Good progress has been made<br />
during the year, with underlying<br />
results in line with expectations,<br />
despite the significant changes<br />
within the business.<br />
I am encouraged to report a year of good progress for the<br />
business, which has delivered underlying results in line with<br />
our expectations.<br />
These results have been achieved despite the challenging UK<br />
economic, regulatory and fiscal conditions, which continue to<br />
impact on the licensed trade sector.<br />
It has been a year of significant change for the business driven<br />
by the Group’s strategic review and the subsequent demerger<br />
of the Spirit business, on 1 August <strong>2011</strong>. The demerger was<br />
completed on schedule and with minimum disruption to the<br />
business, allowing us to maintain focus on our goals as a solely<br />
leased and tenanted business.<br />
Our aim now is to become the UK’s highest quality, most trusted<br />
and best value leased pub company. We are focused on creating<br />
value for our shareholders through successful long-term<br />
partnerships with our licensees in our core estate of 3,000<br />
of the highest quality, best invested leased pubs in the country.<br />
Business review<br />
The Pathway to Partnership programme is now complete and<br />
I am confident we can build on this strong platform to restore<br />
long-term sustainable growth to our core estate.<br />
The focus for the coming year for our core estate will be our<br />
Reaching for Growth initiative, which will support the growth<br />
of the business in four key areas:<br />
i) investment to improve the customer environment<br />
and increase food sales;<br />
ii) attracting high-quality Partners;<br />
iii) driving sales growth; and<br />
iv) effective <strong>Punch</strong> support to improve the performance<br />
of all of our pubs.<br />
The statutory results include a number of non-cash accounting<br />
charges that relate to previously announced asset writedowns<br />
and as a consequence of the Spirit demerger. Full details of these<br />
accounting charges are provided within the financial review.<br />
Following the demerger, <strong>Punch</strong> remains a highly leveraged<br />
business, albeit with significant cash resources (£113m as at<br />
7 October <strong>2011</strong>) held outside of our securitisation structures.<br />
During the year net support into the securitisation structures<br />
amounted to £8m. There are a number of constraints as a result<br />
of our debt structure and we are actively looking at all options to<br />
optimise <strong>Punch</strong>’s capital structure to help facilitate delivery of value.<br />
Financial statements Governance<br />
For more information visit:<br />
www.punchtaverns.com