Punch Taverns PLC Regulatory News (PUB)

PUNCH TAVERNS PLC

Year End Trading Statement for the 52 weeks to 20 August 2011

Fourth Quarter trading in line with expectations

Punch completed its 52 week financial year on 20 August 2011 and expects to issue its preliminary results for the same period on 20 October 2011.

Demerger

As previously announced, Punch successfully completed the demerger of its Spirit business on 1 August 2011. Following the demerger, Punch comprises a leading leased and tenanted pub estate with just over 5,000 pubs in addition to our 50% shareholding in the Matthew Clark joint venture.

Trading

Fourth quarter trading for the 12 weeks to 20 August 2011 was in line with our expectations allowing for the impact of the FIFA World Cup in June last year, which we estimate added between 1% and 2% to the net income performance in the fourth quarter of the 2010 financial year.

·; Total estate: quarter 4 like-for-like net income[1] -5.0% (-5.2% 52 weeks)

·; Core estate: quarter 4 like-for-like net income1 -2.4% (-2.1% 52 weeks)

·; Average net income per pub +0.9% (52 weeks)

Our Pathway to Partnership programme continues to deliver operational benefits with the underlying rate of like-for-like net income (stripping out the effect of the 2010 World Cup) maintaining momentum into the fourth quarter. Our ongoing disposal programme, together with improved like-for-like trends, has resulted in growth in average net income per pub of 0.9% for the year.

Regional trends in trading reflect those reported elsewhere in the sector with continued strength in London and the South East compared to other regions. Our continuing programme of investment has seen us complete 500 pub renovations this year, achieving good returns and increasing food participation in the core estate. Furthermore, a renewed focus on Cask Ale has seen this category outperform in wet sales with c.1,000 pubs now members of our Finest Cask Scheme and several hundred Punch pubs featured in the CAMRA Good Pub Guide. The Punch Buying Club has also supported over 400 Beer Festivals in Punch pubs this year.

Maximising value from non-core assets

During the year we have disposed of 398 Punch pubs together with other assets generating disposal proceeds of approximately £108 million, broadly in line with book value. The rate of disposals increased in the fourth quarter as more pubs were added to our Turnaround division as a result of the previously announced strategic review. As at 20 August 2011, there were 2,951 pubs in the Core division, and 2,053 pubs in the Turnaround division. We continue to work towards our longer term target of divesting the Turnaround division pubs over the next five years. Whilst these pubs remain in our portfolio we remain committed to driving operating performance and cash flow through the Pathway to Partnership initiatives.

Board composition

As previously announced, Stephen Billingham will join the Board as Non-Executive Chairman. Stephen will join the Board on 15 September replacing Peter Cawdron who will retire from the Board after serving for over 8 years.

Roger Whiteside, Chief Executive Officer of Punch Taverns plc, commented:

"Punch is now a dedicated high quality leased and tenanted pub business. Having completed the demerger, we have a clear operational and strategic plan and we will build on the positive momentum delivered throughout this year. Despite the challenging UK consumer environment we are on track to meet our expectations for the full year.

I would like to thank our team at Punch together with our tenants and leaseholders for their hard work and commitment during this period of transition for the business."

- Ends -

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