Punch predicts full-year profits of over £100m

The financial trajectory of Punch Pubs & Co continues to gather pace, as the 1,264-site pub company reveals its results for the 28 weeks to 23 February 2025.

Total revenue for the period was £168.3m, compared to £165.1m in the prior year period of 28
weeks to 25 February 2024.

All three divisions of Punch (Leased and Tenanted, Management Partnership and Laine) delivered like-for-like underlying EBITDA growth for the 28 week period when compared to the prior year.

Underlying EBITDA for the pub estates before central costs increased by £3.2m to £61.8m.
EBITDA for the period was £45.9m (prior year 28 weeks: £42.3m) of which £46.9m was classed as underlying EBITDA.

The business, led by Andy Spencer, says group full-year profitability is expected to grow from the £94.8m of underlying EBITDA for the 12 months to 23 February 2025 to a pro forma run rate EBITDA of £111m at the end of its financial year.

What's behind the growth?

Punch attributes its strong profit growth to inflationary price increases and trade enhancing capex investment. It has also seen maturing profits from pubs converted from Leased and Tenanted to Management Partnership.

In the 28-week period, the group has spent £12.5m on the acquisition of 20 pubs. Punch has also spent £17.3m on expansionary and maintenance capital.

Capital expenditure also includes improvements in energy efficiency, increasing the percentage of pubs (non-listed) with SAP rating C or greater to 88% of pubs at 23 February 2025, with a clear pathway to increasing this to 100% by 31 December 2026.

Punch has identified the next tranche of pubs to convert to its Management Partnership model. 

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