Punch Taverns affected by wet weather

Punch Taverns, the UK’s largest pub chain with around 9,500 tenanted and managed pubs, has announced that full-year profit would be 2-3% lower than previously anticipated due to the wet summer having an impact on beer sales.

A spokesperson for Punch said the group is considering several options, one including a possible de-merger of its managed Spirit division. The group added that it has the flexibility to consider acquisitions and disposals.

Shares in the firm have declined around 20% since July following the industry rumours of property spin-offs has died down and heavy showers have left investors worrying about weaker profits

Punch also highlighted that Robert McDonald, Finance Director, is due to retire and will be replaced by Phil Dutton, ex-Matalan finance chief on September 10.

Following the heavy showers of summer 2007 and a ban on smoking, pub companies have been badly affected. The first has left beer gardens empty while the latter has led to angry smokers staying at home. However, Punch stated that the smoking ban had little impact.

Some pubs were damaged by the floods so had to close whereas were closed due to having no water, the firm’s uninsured losses totalled around £1 million.

Punch is due to announce full-year results on November 8.

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