Punch blames poor trading on lack of sunshine

25th August 2009, 1:01pm

Punch Taverns has said that a lower level of disposable income and an “unhelpful” summer has impacted negatively on its business.

The pubco said: "Trading results to date continue to reflect the challenging market conditions being faced across the sector. The wider recessionary economic conditions have significantly reduced consumer confidence and impacted the level of disposable income being made available for leisure activities.

"Although we anticipate that demand levels are unlikely to improve in the near term, we remain on track to meet our expectations for the financial year. Trading conditions across the quarter have inevitably reflected the varied weather conditions experienced. Whilst late June and early July benefited from good summer weather, the remainder of the summer has been unhelpful to trade, particularly the high level of rainfall seen in July."

Punch said its programme to dispose of non-core assets had been successful with savings of £6 million.

The company added that support to its tenants was more than double provided in the previous year, confirming that a further 450 struggling pubs will also be added to its 'Turnaround Division'.

"While we are confident of the longer term prospects for the Group and our expectations for the full year remain unchanged, we remain cautious over the near-term due to the lack of forward visibility on trading outlook," concluded the trading statement.

Related Articles:

• 31 Mar 2010 - Giles Thorley to step down as chief executive of Punch Taverns
• 18 Aug 2009 - Red Mist Leisure buys three pubs from Punch
• 03 Jul 2009 - St Austell Brewery to buy pubs from Punch Taverns
• 16 Jun 2009 - Punch Taverns remain 'very cautious'
• 09 Jun 2009 - Greene King expands portfolio with 11 Punch pubs
• 08 Jun 2009 - Punch funds new set of wheels for Oliver
• 12 May 2009 - 'Survival of the community pub is remarkable'
• 08 May 2009 - Shepherd Neame acquires 13 Punch pubs
• 29 Apr 2009 - Punch Taverns offloads pubs worth £91m
• 06 Apr 2009 - Peach buys Punch pubs
• 10 Feb 2009 - Why pubs still have room to grow
• 05 Feb 2009 - Commercial director at Punch Taverns steps down
• 15 Jan 2009 - Punch unveils more bad news
• 10 Nov 2008 - Profits slump at Punch Taverns

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