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Fri 1st Aug 2025 - Update: Punch refinances and reports strong summer trading, Adnams hires new CFO |
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Punch refinances and reports strong summer trading, with Ebitda ahead of the same period in 2024: Punch Pubs & Co, the Andy Spencer-led, 1,268-strong pub company, has refinanced and reported strong summer trading, with Ebitda ahead of the same period last year. In a trading update for the 40 weeks to 18 May 2025, the company said: “Quarter four trading to date (eight weeks to 13 July 2025) has been strong, with Ebitda ahead of the same period in 2024. After the end of the period, the group successfully completed the refinancing of the existing £600.0m senior secured notes and £70.0m revolving credit facility. On 5 June 2025, £640.0 of new senior secured notes were issued at 7.875% which expire 30 December 2030. The existing revolving credit facility was also extended to £85.0m, with an expiry date of 30 June 2030. On receipt of the proceeds of the new notes, the revolving credit facility was repaid in full. £365.4m of the existing notes were repaid on 30 June 2025, with the remaining £234.6m being repaid on 30 June 2025.” It comes after Punch reported total revenue was £251.7m For the 40 weeks to 18 May 2025 compared to £241.5m in the prior year period of 40 weeks to 19 May 2024. Both segments (Leased and Tenanted and Pub Partnership) delivered like-for-like underlying Ebitda growth for the period when compared to the prior year. Underlying Ebitda for the pub estates before central costs increased by £9.1m to £98.7m. Ebitda for the period was £69.3m (prior year 40 weeks: £63.2m), of which £71.2m was classed as underlying Ebitda (prior year 40 weeks: £65.0m). Underlying Ebitda for the 52 weeks to 18 May 2025 of £97.3m compares positively to the £76.0m of adjusted underlying Ebitda from the wider group in the year to August 2019 – the most recent financial year prior to the covid pandemic. The company said: “This strong profit growth stems from growth in our like-for-like estate, driven by inflationary price increases and trade enhancing capex investment; maturing profits from pubs converted from L&T to PP; opportunistic acquisitions of single sites and small pub portfolios, with 65 acquisitions completed since August 2022; and optimising our cost base as we implement the £5.1m cost saving plan identified in partnership with Deloitte.” Drink revenue was £194.1m (L&T £73.5m, PP £120.6m) compared to £187.4m in the 2024 period (L&T £70.2m, PP £117.2m), while food revenue was £27.9m compared to £25.1m in the 2024 period. A £43.8m movement in valuation of properties saw a pre-tax profit of £19.3m before underlying items for the period turn into a loss of £28.4m after underlying items. This compares to a £14.2m profit in the same period in 2024. The group spent £17.1m on the acquisition of 29 pubs in the period, plus £27.1m (prior year 40 weeks: £20.6m) on expansionary and maintenance capital. The company said: “As noted in previous reports, we have identified the next tranche of pubs to convert to the Pub Partnership model. We are now in our 11th year of progressively converting pubs across from L&T to Pub Partnerships. Over the ten-year period to February 2024, we converted 240 pubs at an ROI of 33% on average enhancing capex spend of £205,000 per pub. We converted a further 11 pubs from L&T to PP in the quarter, with approximately 40 pubs identified for conversion over the next 12 months.” Net proceeds from the sale of properties in the period was £8.4m (prior year 40 weeks: £11.0m), at £1.0m above book value (prior year 40 weeks: £2.1m). Having realised £8.4m from property disposals in the period, property assets increased by £86.9m to £1,002.7m (11 August 2024: £915.8m). The group generated a net cash inflow from operating activities for the period of £68.1m (prior year 40 weeks: £58.6m).
Premium Club subscribers to receive new searchable and segmented New Openings Database and videos from the Operational Excellence Conference today: The next Propel New Openings Database will be sent to Premium Club subscribers today (Friday 1 August). The database will show the details of 157 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club members will also receive a 9,157-word report on the 157 new additions to the database. The database includes new openings in the quick service restaurant sector such as Manchester Detroit pizza business Dough Club, Midlands smash burger business Brgr Lab and Junk Group, opening a second UK site under its eponymous smash burger brand. Premium Club subscribers will also receive all the videos from the Operational Excellence Conference today at 9am. They include Philip Eeles, founder of Honest Burgers, Breadstall Pizza & Pineapple, reflecting on starting a new restaurant in the current market; the need for a balance between taste, operational efficiency and GP; and how people metrics underpin overall performance. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-site Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. In this week’s Premium Opinion, Propel group editor looks back at the week’s news, including the return of David Page and possible new investors for Dishoom. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Adnams hires new CFO: Suffolk brewer and retailer Adnams has hired Andy Driscoll as its new chief financial officer. A Deloitte qualified financial professional with significant financial leadership experience across FMCG and logistics sectors, Driscoll will formally join the business on 1 September 2025, when he will become an executive director of the Adnams board. Driscoll’s appointment supersedes the work of interim funding director Robin Paul, who will stand down in the coming weeks after a period of handover. Adnams said Driscoll’s appointment is a “significant step within the company’s growth strategy for 2025 and beyond”. Driscoll, who has previously served as chief financial officer for the likes of Constellation Cold Logistics, Valeo Snackfoods and Kettle Foods, said: “I am very much looking forward to becoming part of the Adnams operation, particularly at a time of such bold vision for the future. I have been extremely fortunate to have worked for a number of brands across FMCG and manufacturing, but it is especially exciting to join a business whose ethos and products are so cherished, not only within the Adnams heartland, but across the UK and beyond.” Adnams chief executive officer Jenny Hanlon said: “Andy is a great fit for our business and will play a very important part as we continue our focus on growth and profitability. We are very clear on our strategic emphasis in the months ahead – namely Ghost Ship and Destination Southwold – and Andy’s experience will help ensure we remain on course with that approach, and that we deliver outstanding outcomes for our shareholders and our loyal customers too.” Noble Hospitality Group confirms October launch for Chotto Matte Manchester: Noble Hospitality Group – the group behind Japanese brand Chotto Matte, Angus Steakhouse and Steak and Company – has confirmed its Chotto Matte site in Manchester will open in October. The restaurant, in Gary Neville’s landmark St Michael’s development, will marks the brand’s first launch in the north of England. Located at the top of No.1 St Michael’s, the restaurant will feature a selection of graffiti-style murals in partnership with a local artist, a 348-capacity roof terrace accessible all year with panoramic views across Manchester, open sushi and robata counters, two large private dining rooms and immersive lighting that evolves from day to night. The 502-cover restaurant will also see an extensive menu designed by executive chef Jordan Sclare, with signature dishes such as sea bass ceviche, Nikkei gyoza, sato maki roll and pollo den miso. Chotto Matte Manchester will also offer a curated cocktail list, including “reimagined classics, exclusive Manchester serves and Nikkei-inspired creations”, as well as a live music schedule across every weekend. Founder Kurt Zdesar said: “Manchester is one of the UK’s fastest growing cities with a booming hospitality scene, making it a perfect place for Chotto Matte’s next site. Working closely with Gary Neville and Relentless Developments, I knew the St Michael’s site was exactly what we were looking for as soon as I saw the plans. What Gary has created is vibrant, bold and sophisticated, everything we are as a brand. We are really looking forward to launching and taking over one of the most beautiful roof terraces in the city whilst bringing our new Nikkei dining concept to Manchester.” Gary Neville, Director of Relentless Developments, added: “Opening our doors at No.1 St Michael’s after more than 15 years of planning and development is a really proud moment for us. Chotto Matte is a global brand with a wealth of experience and exactly the kind of occupier we wanted for our stunning top floor and roof terrace. I’ve really enjoyed working alongside Kurt and look forward to welcoming him and his team to Manchester ahead of the launch later this year.” The opening in Manchester follows successful openings in London, Doha, Toronto, San Francisco and Riyadh.
British businesses ‘are facing a cacophony of risk’ bosses say: Business confidence has collapsed to its lowest level on record as firms face a ‘cacophony of risk’, bosses of industry have warned. The Institute of Directors (IoD) said optimism has evaporated in the face of higher taxes, rising employment costs and red tape. Bosses called on the chancellor to “urgently quash rumours of further tax rises for business this autumn” to help restore shattered confidence – now lower than during covid lockdowns.The IoD’s monthly Economic Confidence Index crashed to minus 72 in July from minus 53 in June, the lowest reading since the survey started in July 2016. IoD chief economist Anna Leach urged Labour to rule out further tax hikes on business. “Damaging speculation around tax rises in the lead-up to the 2024 Budget caused many firms to pause investment and hiring decisions – contributing to six months of near-zero economic growth,” she said. “With ripple effects through the economy from tax changes and signs of consumer retrenchment, many firms report that they are struggling to plan amid a cacophony of risk. The government must urgently quash rumours of further tax rises for business this autumn.”
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