Punch Taverns plc 2011 Annual Report

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Punch Taverns plc
Annual Report and Financial Statements 2011
Notes to the financial statements continued
for the 52 weeks ended 21 August 2011
9 Discontinued operations
At a General Meeting on 26 July 2011, the Company’s shareholders approved the demerger of the Spirit business. On 1 August 2011,
the Spirit business was transferred to a non-group company, Spirit Pub Company plc, in return for that company issuing its own
ordinary shares on a one-for-one basis to the Company’s shareholders. In addition to the Spirit business being transferred,
Punch Taverns plc also transferred a net £61m of cash to Spirit.
There is no impact on the prior year financial statements as a result of this demerger other than a change in the presentation of
the results and cash flows of the Spirit managed business to discontinued operations and a reclassification of the results of the
Spirit leased business to non-underlying. There is no impact on the prior year balance sheet.
The disclosures below relate only to the demerged Spirit managed business segment. The disclosures do not include the Spirit
leased business segment as this segment cannot be classified as discontinued within the definitions of IFRS 5.
a) The results of the Spirit managed business before demerger were as follows:
49 weeks to
31 July
2011
£m
52 weeks to
21 August
2010
£m
Revenue 608.4 629.9
Operating costs before depreciation and amortisation (see note (b) below) (529.5) (566.4)
EBITDA 78.9 63.5
Depreciation and amortisation (30.0) (31.0)
Impairment (4.9) (8.5)
Goodwill charge – (3.2)
Profit on sale of non-current assets 0.7 4.8
Operating profit 44.7 25.6
Finance income 50.0 68.8
Finance costs (57.4) (76.7)
Movement in fair value of interest rate swaps (21.9) (46.8)
Profit / (loss) before taxation 15.4 (29.1)
UK income tax credit 46.2 21.4
Profit / (loss) for the financial period 61.6 (7.7)
The results of discontinued operations were previously recorded in the managed segment, as described in note 2.
b) An analysis of operating costs incurred by the Spirit managed business prior to demerger is as follows:
49 weeks to
31 July
2011
£m
52 weeks to
21 August
2010
£m
Drink and food costs 176.9 181.7
Managed pub running costs 266.4 282.0
Leasehold rentals 40.2 48.1
Depreciation 26.9 27.6
Amortisation 3.1 3.4
Impairment losses 4.9 8.5
Goodwill charge – 3.2
Profit on sale of non-current assets (0.7) (4.8)
Other costs 46.0 54.6
Total costs deducted from revenue to determine operating profit 563.7 604.3
c) Income tax relating to the Spirit managed business is as follows:
49 weeks to
31 July
2011
£m
52 weeks to
21 August
2010
£m
Current tax credit 25.4 24.5
Deferred tax credit / (charge) 20.8 (3.1)
Total tax credit 46.2 21.4