|
|
|
Fri 14th Feb 2025 - Punch reports ‘encouraging’ current trading, new acquisitions forecast to help deliver adjusted run-rate Ebitda of almost £100m |
|
|
Punch reports ‘encouraging’ current trading with profitability ahead of prior year, new acquisitions forecast to help deliver adjusted run-rate Ebitda of almost £100m: Punch Pubs & Co has reported “encouraging” current trading, with profitability ahead of the prior year, and said its new acquisitions are forecast to help it deliver adjusted run-rate Ebitda of almost £100m. “Quarter two trading to date has been encouraging, with profitability ahead of the prior year,” the company said in a trading update for the 16 weeks to 1 December 2024. “Mat Ebitda of £92.6m to 1 December 2024 will be further boosted by (i) +£4.8m incremental Ebitda from the recent acquisition of 36 pubs in H2-FY24 and 18 pubs in Q1-FY25; (ii) +£2.4m of run-rate cost saving efficiencies to be realised within the next 12 months; leading to an adjusted run-rate Ebitda of £99.8m.” The update also revealed that Punch paid £9.1m for the 14 pubs it acquired from real estate investment company Aprirose in September 2024. “In the 16-week period, the group has spent £11m on the acquisition of 18 pubs,” it said. “The group has also spent £10.7m (prior year 16 weeks: £7.7m) on expansionary and maintenance capital. During the quarter, on 25 September 2024, the group acquired a portfolio of 14 managed pubs at a cost of circa £9.1m including SDLT and fees. The acquisition has been funded from available cash resources and drawing on the revolving credit facility. The portfolio is predominantly freehold, including two long leasehold and one short leasehold properties. Following completion, the pubs have all been converted to the leased and tenanted operating format, with the expectation of converting approximately half of the sites to the Management Partnerships division over the next 18 months. The portfolio is expected to positively contribute to Ebitda from acquisition and is forecast to enhance net leverage following the first full year of trading. As noted in previous reports, we have identified the next tranche of pubs to convert to the Management Partnership model, having identified an additional population of up to 70 pubs that would be suitable for conversion. In the 16-week period, the group has converted three pubs to the Management Partnership model. We are pleased with the strong returns on investment that we are seeing from past conversions and would expect to achieve similar returns on future conversions of between 20% and 30%. Net proceeds from the sale of properties in the period was £4.3m (prior year 16 weeks: £4.1m), at £0.4m above book value (prior year 16 weeks: £1.7m).” It comes as the group reported total revenue of £97.3m for the 16 weeks to 1 December 2024 compared to £96m in the prior year period of 16 weeks to 3 December 2023. Of this, £74.8m came from drinks (2023: £74.4m), £10.6m from food (2023: £9.8m) and £9.1m from rental income (2023: £8.9m). The Management Partnership division delivered revenue of £43.6m (2023: £42.9m), Leased and Tenanted £39.5m (2023: £37.8m) and Laine £14.2m (2023: £15.3m). The group reported a pre-tax profit of £6.4m for the period, down from £6.8m in the 16 weeks to 3 December 2023. The group said: “All three divisions delivered like-for-like underlying Ebitda growth for the 16-week period when compared to the prior year. Underlying Ebitda for the pub estates before central costs increased by £2.1m to £36.2m, up 6%. Ebitda for the period was £26.5m (prior year 16 weeks: £25m) of which £27.1m was classed as underlying Ebitda (prior year 16 weeks: £25.6m). Underlying Ebitda for the 52 weeks to 1 December 2024 of £92.6m compares positively to the £76m of adjusted underlying Ebitda from the wider Punch Group in the year to August 2019, being the most recent financial year prior to the covid pandemic. After having realised £4.3m from property disposals in the period, property assets increased by £13.7m in the period to £929.5mi (11 August 2024: £915.8m). The current net book value of properties at £929.5m compares favourably to the full estate property valuation undertaken ahead of the high yield bond launch in May 2021 at £849.7m. The group generated a net cash inflow from operating activities for the period of £18.7m (prior year 16 weeks: £22.2m). As at the 01 December 2024 period end date, the group had £74.1m of available financial resources (11 August 2024: £66.5m), represented by £5.3m of cash and cash equivalents, £37m undrawn against the revolving credit facility and £31.8m from 47 freehold pub acquisitions funded from cash reserves and drawing on the revolving credit facility. In addition, £2.6m of cash held in deposit accounts is classified within prepayments (11 August 2024: £2.6m).” Punch features in the Propel 500 report, an unparalleled resource that profiles the UK’s leading hospitality operators ranked by turnover – which is available now. This comprehensive report provides more than 90,000 words of analysis, delving into company histories, leadership structures, site numbers and financial performance, making it an essential resource for industry professionals. A list of the operators included can be discovered now by visiting the Propel 500 page on Propel’s website. The guide is delivered in two parts: an introductory PDF, featuring deep dives into the top 25 companies and 6,500 words of insight from Propel’s expert writers, and a fully searchable Excel sheet, offering easy access to all the data. Key highlights include Mark Wingett’s exploration of mergers and acquisitions shaping the Top 500’s future, Tim Street’s view of the UK’s franchise market, and Phil Pemberton’s insights into experiential leisure as a hospitality cornerstone. Katherine Doggrell examines developments in UK hotels, while Mark Bentley, business development director at HDI, identifies emerging growth sectors, and Maria Vanifatova, founder of Meaningful Vision, analyses trends in quick service restaurants. Propel 500 is available now for £595 plus VAT. Existing Premium Club members can purchase it for £395 plus VAT. Premium Club members will receive the report for free on Friday, 28 February at 9am. Order the Propel 500 report today by emailing: kai.kirkman@propelinfo.com.
Premium Club members to receive next Turnover & Profits Blue Book today featuring 1,066 companies: Premium Club members will receive the next Turnover & Profits Blue Book today (Friday, 14 February), at 12pm. The database will feature 79 updated accounts and ten new companies, taking the total to 1,066. A total of 665 companies are making a profit while 401 are making a loss. The Blue Book is updated each month and ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Premium Club members also receive access to five other databases: the Multi-Site Database, the New Openings 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 Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Excellence in Pub Retail (May 2025) and discounts on specialist sector reports such as the Propel 500 and International Brands report. Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members 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 members 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 members 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. 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.
Lancaster Brewery Company reports turnover and profit boost: Brewery and pub operator, Lancaster Brewery Company, has reported turnover increased to £7,615,650 for the year ending 31 January 2024 compared with £6,783,515 the previous year. Pre-tax profit was up to £504,531 from £285,875 the year before. The company operates Lancaster Brewery and its taproom, The Sun in Lancaster, The Duke of Edinburgh in Barrow-in-Furness, the Mill in Ulverston and The Tile & Locke in Lancaster, as well as owning the freehold to The Palatine in Morecambe. In his report accompanying the accounts, director Paul Simpson stated: “The business has traded well. The Brewery and Tap performed well, with impressive growth in turnover and profit, despite the many economic headwinds. The Tap continued its good performance and demand for the brewery products remained strong. The Sun had a strong year. A shortage of quality hotel accommodation has meant it has been exceptionally busy. Food, drink and hotel have remained strong all year. Profit has been improved through careful control of costs and a focus on maintaining standards and turnover. The Duke has continued its post-pandemic recovery at a steady rate. Better cost control and work on the food and drink offering have meant the Mill enjoyed one of its best years on record. The Tile & Locke has proved to be very popular and has performed exceptionally well despite frequent disruption due to rail disputes.” The company, which employs around 120 staff, received £22,450 in government grants compared with £497,805 in 2022. Dividends of £111,336 were paid (2023: £279,130). South Wales McDonald’s franchisee sees turnover boosted by growth in delivery and price rises: South Wales McDonald’s franchisee Yash said its turnover was boosted by a growth in delivery and price rises in the year to 31 December 2023. The five-strong company’s turnover grew 8% from £23,079,017 in 2022 to £24,927,696. Pre-tax losses widened from £235,153 to £723,821 as costs rose by almost £1m and administration expenses by almost £2m. Dividends of £150,000 were paid (2022: £396,000). Director Jane Blackwell said. “The growth in sales is predominantly due to the continued growth in delivery sales and incremental price rises. The gross profit margin is 63.49% compared with63.59% in 2022 and is in line with expectations. Despite the net current liabilities position, and a fall in net assets from £1.424m in 2022 to £727,000 in 2023, the strength of the business remains strong, and the directors consider the company to have adequate resources to meet liabilities as they fall due.” Blackwell, a former Post Office franchisee, founded Yash in 2013.
|
|
|
|
|
|
|
