Punch Pubs reports strong financial growth and strategic expansion

Punch Pubs Group, which operates 1,268 pubs across the country, saw a sharp increase in revenue and earnings as it continues to expand and invest across its estate.

In the latest 12-week period, Punch generated £83.4 million in revenue – up from £76.4 million the year before.

Underlying EBITDA also rose significantly, reaching £24.3 million compared to £21.8 million in 2024.

This growth reflects not only steady trading but also the group’s continued focus on capital investment and operational efficiency.

Over the 40-week period, both the leased and tenanted and Pub Partnership divisions reported like-for-like EBITDA growth.

Total underlying EBITDA before central costs climbed to £98.7 million – up £9.1 million from the previous year.

Investing in growth

Punch’s investment strategy is a key driver of this growth. Since August 2022, it has acquired 65 new sites, blending single pub purchases with small portfolio deals.

In just the most recent quarter, Punch invested £9.8 million in capital improvements and spent a further £4.6 million on acquisitions, bringing nine new pubs into the fold while divesting five.

Strategic conversions are also playing a big role. The business continues its long-term transition of pubs from its leased and tenanted model to the Pub Partnership format. Now in its eleventh year, this initiative has seen 240 pubs converted at an average return on investment of 33%. An additional 11 pubs made the switch this quarter, with around 40 more earmarked for conversion over the coming year.

The company’s financial resilience was further strengthened post-period by a successful refinancing deal. Punch issued £640 million in new senior secured notes maturing in 2030 and extended its revolving credit facility to £85 million, repaying its previous £620 million debt in full.

Looking ahead, Punch expects continued momentum as it benefits from recent price increases, ongoing capex investments, and a £5.1 million cost-saving programme developed with Deloitte.

With quarter-four trading already ahead of last year and its estate mix evolving strategically, Punch Pubs is positioning itself strongly for sustainable growth.

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