Pub operator Punch Taverns is on track to sell 500 “non-core” pubs in its full financial year after disposing of 349 so far.
In a stock market update for the 12 weeks to 26 May, the group said that the pub disposals, together with other assets sold in the first 40 weeks of its year, had generated net proceeds of £95m.
The group has been hit hard by the wet weather this spring, compounding the shortfall on a bumper 2011, which was boosted by the royal wedding bank holiday.
Like-for-like net income from the core estate is down by 6.4% in the period and by 3.4% in the 40 weeks to 26 May.
However, average income per pub across the full estate of 4,655 pubs remains broadly flat, boosted by the ongoing disposals.
Roger Whiteside, chief executive of Punch Taverns, said: “Having worked hard to contain costs, we remain on track to meet management’s full-year profit expectations. Our anticipation of a difficult third quarter, because of strong comparatives last year, has been compounded by the exceptional wet weather this year.
“Encouragingly, we have made a good start to our fourth quarter and notwithstanding recent difficult market conditions, the underlying business remains robust.
“We have a clear operational plan to return the core estate to growth in the medium-term and we remain on-track to maximise value from our non-core assets.”
jack.sidders@estatesgazetette.com
