The UK’s largest pubs group has revealed annual losses of £405.7 million citing a fall in the value of its estate and the poor summer weather as the major reasons for the loss. Punch Taverns properties suffered a loss in value of £663 million across the UK, as the economic downturn takes its toll on property prices . The company stood to make a profit of £161 million without the write-downs, though that figure still represents a 39 per cent fall on the previous year’s profits. The pub group made losses of more than £80 million last year, as it struggles to cope with the fallout of the credit crunch .
Despite the worrying financial figures, Punch Taverns was still able to reduce its debts by more than £1 billion in the past financial year. A £375 million fundraising measure with shareholders helped the group reduce debts to £3.5 billion.
Andy Hodgson, Punch’s regional operations director, said the results were in line with expectations, and lamented the poor weather over the past three summers. As a result, the group has suffered weaker beer sales and lower rental income. With sizeable tax increases on beers, ciders and wines, the pub industry faces a difficult period for a while to come yet.
Pub Group Suffer Loss After Beer Sales Slump and Writedowns
Thu, 15 Oct 2009
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