Punch Pubs has reported a surge in revenues over the past year following the acquisition of 74 additional pub sites. The Burton-upon-Trent-based hospitality business said trading has remained "strong" in recent weeks, despite mounting pressure on household finances.
Chief executive Andy Spencer said the company has entered the new financial year with "real confidence" notwithstanding the economic headwinds facing the pub sector.
Revenue growth and expansion
Punch disclosed that revenues climbed 11.8% to £377.8 million for the year to August 9, compared with the previous year. The pub operator said the growth was partly driven by an acceleration of its expansion strategy, with the business acquiring 74 pubs during the year, up from 35 sites in the prior year.
The expansion programme, which has brought Punch's estate to 1,327 pubs, included the purchase of 30 venues from Hertfordshire-based McMullen's alongside numerous smaller transactions. Mr Spencer said the group's acquisition strategy is "gathering pace", bolstering the company's market position.
Future pipeline and trading performance
Punch said it maintains a "robust pipeline" of further pub purchases and has completed, exchanged or agreed terms on 12 sites for a combined £12.8 million since the close of the previous financial year in August.
Management added that trading was "strong" across the eight weeks to October 4, with underlying earnings rising 13% year on year. Mr Spencer said: "This has been another year of strong performance for Punch, which is a testament to our brilliant teams, the fantastic publicans we work in partnership with, and our clear, disciplined strategy that continues to deliver results.
"Despite ongoing economic pressures across the sector, we enter the new financial year with real confidence."
He added: "We are ahead of the ambitions we set out in 2025, have built a scalable, data-informed business capable of acquiring, enhancing and operating great community pubs, driven by outstanding publicans; and with around 1,300 pubs in a market of approximately 45,000, we see a significant runway for future growth."
