Look at it!

Preliminary Results for the 52 weeks to 20 August 2011

Underlying financial performance* - In line with market expectations

EBITDA of 258 million (2010: 291 million)

Profit before tax of 76 million (2010: 90 million)

Basic earnings per share of 8.6p (2010: 9.9p)

Operating cash flow of 202 million

113 million of cash reserves (at 7 October 2011) held outside the securitisations

Net assets of 202 million (31p per share)

Q2 Interim Management Statement.

Trading summary

· Growth in average net income per pub across the full estate of 0.8%
· Regionally mixed, stronger performance in the South of England
· Core estate: Like-for-like net income -2.9% (-2.1% 28 weeks to 3 March 2012)
· Disposal proceeds of £62 million, slightly ahead of book value
· Non-core estate: Like-for-like net income -10.2% (-9.7% 28 weeks to 3 March 2012)

Average net income per pub across the full estate of 4,790 pubs increased by 0.8% over the half year, benefiting from the ongoing disposal of non-core assets.

A bit of life here today and good volume.

Interim Management Statement

Profit performance in line with management expectations
Average profit per pub is stable and overall profit performance is in line with management expectations. We have achieved this despite the challenging market conditions which continued during the first quarter.

Whilst the average quality of the estate is expected to improve as we sell non-core assets, the core estate net income is expected to decline in the current financial year in line with that experienced last year as we rebalance rents in the short-term, with a return to growth expected in the next financial year. Trading comparatives are much more challenging in the first half of this year and given this, net income in the core estate is down 5% on a like-for-like basis, in line with management expectations. Trading comparatives are expected to improve in the second half of the year when the business will also benefit from the recent improvements in letting and investment activity.

Bit of a surge with volume - I haven't followed for a while.

Capital Structure Update

HIGHLIGHTS

Restructuring solutions identified for each securitisation

· Utilise cash resources at Group and within the Punch B securitisation to extinguish and cancel certain tranches of Punch B debt at a material discount to par; and

· Amend financial covenants and defer amortisation in the Punch A securitisation, creating a platform for future deleveraging.

Achieves a material reduction in debt and debt service

· £463 million reduction in contractual debt service payments over the next five years;

· £393 million targeted debt prepayment ahead of the new amortisation schedule over the next five years; and

· £229 million immediate reduction in debt in the Punch B securitisation.

Delivers value to all stakeholders including:

· Creates a sustainable capital structure for a highly profitable pub business which delivered £225 million of underlying operating profit and £312 million of cash generation before debt service in the last financial year;

· Provides a platform on which to execute the business plan, including a £220 million investment programme focused on the core estate and the disposal of £435 million of non-core assets; and

· Protects the material financial and operational benefits from which the two securitisations mutually benefit by being part of the wider Punch group.

Supported by a broad group of stakeholders

· A group of five financial institutions, consisting of Glenview Capital, Octavian, Luxor Capital, Alchemy and Avenue Capital, who together manage funds that hold over 50% of the Group's issued share capital, c.25% of the Punch B debt in total and a majority of the total junior debt in Punch B and the trustees of the Punch B defined benefit pension scheme;

· Monoline insurers, Ambac and MBIA who between them guarantee c.£990 million of notes across the two securitisations, including over 50% of the Punch A notes, and whose approval of the proposed restructurings is required;

· In addition, the Board has already commenced discussions with a number of other stakeholders including swap counterparties, liquidity facility providers and other holders of debt in the two securitisations; and

· Punch will now engage with all stakeholders to seek additional support to implement the proposed restructuring solutions as soon as possible, while keeping the provision of financial support to the Punch A and Punch B securitisations
under review.

Taken some off the table this morning - cheers!

Nice one skinny!

Cheers Kim!

Second Quarter Trading Update

ON TRACK TO MEET OUR FULL YEAR PROFIT EXPECTATIONS

n Profit performance in line with management expectations
n Improving like-for-like trends in net income
n Core estate at 94% let, up from 91% at March 2012
n 270 core investments completed in the half year at an average spend of c.£100k per pub
n Punch Buying Club membership increased to 3,300 Partners (March 2012: 2,200)
n £55m of disposal proceeds in the half year, above book value and slightly ahead of expectations

Interim Results

Interim Results for the 28 weeks to 2 March 2013

Underlying financial performance* - in line with management expectations
· EBITDA of £117 million
· Profit before tax of £26 million
· Basic earnings per share of 3.0p
· £254 million of cash reserves
· On track to meet full year profit expectations

Operational highlights*
· Improvement in core estate like-for-like net income** down 3.5% in the second quarter, compared to a decrease of 5.2% for the first quarter
· Core estate at 94% let, up from 91% at March 2012
· Investment in 270 core pubs completed in the half year at an average spend of c.£100k per pub
· Punch Buying Club membership increased to 3,300 Partners (March 2012: 2,200)
· 164 pubs sold, together with other assets for £55 million, above book value and at a multiple of 18 times EBITDA

Capital structure review
· Since announcing the restructuring proposal on 7 February 2013 we have continued to engage with the many stakeholders who will need to approve the restructuring proposal.
· While discussions remain ongoing and a range of views have been expressed, the Board believes that a consensual restructuring can be launched in the first half of 2013.

In auction.

Capital Structure Update

Since the announcement of the restructuring proposals for the Group's Punch A and Punch B securitisation structures on 7 February 2013 (the "Restructuring Proposal"), the Group has continued to engage with the many stakeholders who will need to support the Restructuring Proposal. As part of this process Punch convened a meeting on 17 April 2013 with a number of significant stakeholders and their advisers to discuss the Restructuring Proposal and the feedback received by Punch from stakeholders since 7 February 2013.

A wide range of views was expressed at the meeting, including the feasibility of a pre-pack administrative receivership of one or both of the securitisations to effect a restructuring. Punch has reiterated that a pre-pack cannot be executed, is not in the interests of stakeholders as a whole and the Board cannot support such an option.

Some stakeholders had previously expressed their lack of support for the current terms of the Restructuring Proposal and these views were reiterated in the meeting. However, whilst it was not anticipated that agreement would be reached at the meeting, views were expressed that provide a basis for further discussion with stakeholders around the Restructuring Proposal. These discussions are ongoing.

The Board continues to believe that a consensual restructuring is in the best interests of all stakeholders and that a restructuring can be launched in the first half of 2013.

A full copy of the presentation provided to stakeholders at the meeting is available on the Punch website www.punchtavernsplc.com. This presentation includes the following information:

Full year Trading Update

FULL YEAR PROFITS IN LINE WITH MANAGEMENT EXPECTATIONS;
FOURTH QUARTER CORE NET INCOME IN GROWTH

n Average net income per pub +1.5% (52 weeks)
n Improving like-for-like trends in net income; core estate net income up 0.4% in the fourth quarter (-2.4% 52 weeks to 17 August 2013)
n 96% of the core estate let on substantive agreements, up from 94% at August 2012
n 476 core investments completed in the year at an average spend of £102k per pub
n Punch Buying Club membership increased to c.90% of the core estate (August 2012: 72%)
n 433 pubs sold for £149 million, ahead of book value, at a multiple of 18 times EBITDA
n 116 pubs transferred from the non-core division to the core division from the start of the new financial year

Time to buy.

Looking good very large volume last week responsible for the Break out

Preliminary Results

Underlying financial performance* - in line with guidance
· EBITDA of £216 million (2012: £238 million)
· Profit before tax of £49 million (2012: £64 million)
· Basic earnings per share of 5.7p (2012: 7.2p)
· Strong cash position; £329 million of cash reserves
· Net debt decreased by 6% or £122 million

Operational KPIs*
· Improving like-for-like trends in net income**, with core estate net income
· up 0.4% in the fourth quarter
· down 2.4% for the 52 weeks to 17 August 2013 (ahead of guidance of -3% to -4%)
· Average net income per pub +1.5% across the year
· 96% of the core estate let on substantive agreements, up from 94% at August 2012
· 433 pubs disposed for £149 million, £11 million ahead of book value and at a multiple of 18 times EBITDA

Operational headlines
· Continued progress delivering the business plan:

Core estate:
· Recruitment: 96% of the estate let on substantive agreements, ahead of our target range of 93% to 95%; letting activity and applicant numbers up 17% and 28% respectively
· Investment: Ahead of plan with 476 pubs invested in at an average spend of £102,000
· Food development: Food mix up another 3 percentage points to 27%
· Increased field support:New Business Development Division to provide increased support to all newly launched businesses over their first six months
· Punch Buying Club: Membership in its fourth year, increased to c.90%, up from 72% at August 2012
· Punch Foundation Tenancy: Under this new arrangement we provide Partners with a newly refurbished pub and a full range of support. With 48 pubs operating under this agreement, drink sales have grown c.50% and we plan to extend to c.200 pubs in 2014

Non-core estate:
· Disposal programme on track, realising total net proceeds of £149 million in the year. Following the improvement in the performance of a number of pubs in the non-core division, 116 pubs have been transferred to the core division from the start of the new financial year.

Capital structure update
· Punch has continued an extensive process of engagement with a broad range of stakeholders across the capital structure (including the ABI Special Committee of noteholders and its advisers) to discuss feedback, and continue to build a broad base of support for the restructuring.
· Whilst the process of engagement has taken longer than previously anticipated, the Board believes that a consensual restructuring can be launched in the fourth quarter of the 2013 calendar year and will provide an update on the implementation of the restructuring in due course.

Restructuring Update

Under the terms of confidentiality agreements with certain stakeholders, Punch is publishing details of restructuring terms proposed by a group of stakeholders in the Punch A and Punch B securitisations (the "Proposals").

The key terms of the Proposals have been provided to the Company in the form of term sheets for Punch A and Punch B, which are reproduced in the appendix to this announcement.

The Proposals are supported in principle by a group of creditors to the Punch A and Punch B securitisations who together own or control c.34% of the notes across Punch A and Punch B and over 50% of junior notes in both securitisations and the equity share capital of Punch (the "Stakeholder Group"). In addition, whilst the ABI Special Noteholder Committee is not currently signed up to the Proposals, substantial progress has been made in addressing their issues.

Implementation of a consensual restructuring would require the consent of other parties outside of the Stakeholder Group, including shareholders, all classes of noteholders in Punch A and Punch B and other securitisation creditors. Accordingly, there can be no certainty that the Proposals will proceed.

A restructuring of the securitisations is required in order to avoid a default in both the Punch A and Punch B securitisations, which would be likely to have a material negative impact for all stakeholders.

The Proposals differ in a number of ways from the terms of the restructuring launched by Punch on 15 January 2014. In particular, junior notes in Punch A and Punch B would be exchanged for a combination of not only cash and new junior notes, but also ordinary shares in the Company in a debt-for-equity swap. In addition, a group of junior creditors would subscribe for ordinary shares in the Company at a significant discount to the current market price to raise additional funds to be applied to repay junior notes in the Punch A securitisation.

The Proposals would result in a reduction in total net debt (including the mark-to-market on interest rate swaps) of £0.6 billion. In consideration for the debt reduction, the debt-for-equity swap and placing contemplated by the Proposals would result in significant equity dilution for existing shareholders, such that the Company's currently issued share capital would represent 15% of its total enlarged issued share capital following the restructuring.

Were the Proposals to be implemented, the reduction in net debt (including the mark-to-market on interest rate swaps) of £0.6 billion would result in the pro-forma net debt to EBITDA leverage of the Punch group falling to c.7.7x[1] at August 2014. Gross securitisation debt[2] of £1,582 million would have an effective interest rate of c.7.9% including PIK interest (c.7.1% cash pay interest).

Any decision by the Board to recommend a proposal involving dilution of existing shareholders would need to be carefully considered in terms of the value which it represents for existing shareholders.

Implementation of the Proposals, or any consensual restructuring involving a significant equity component, results in additional execution complexity. Accordingly, the Board is of the view that it will not be possible to launch the Proposals, or any consensual restructuring involving a significant equity component, prior to the deadline of 30 June 2014 included in the covenant waivers obtained by Punch A and Punch B on 13 May 2014. It is, therefore, likely that Punch A and Punch B will require an extension to the covenant waivers to provide sufficient time to implement a consensual restructuring and Punch will provide further details of any such extension in due course.

[1] Based on pro-forma gross securitisation debt at August 2014 (excluding swap mark-to-market) of £1,582 million, less £31 million of cash liquidity balances and mid-point group underlying EBITDA guidance of £201 million
[2] Excluding swap mark-to-market
27 May 2014

Class 2 Disposal

Punch is pleased to announce that it has reached agreement to sell 5 pubs to Manica Properties Limited for a total consideration of £9.7 million. The pubs to be sold are freehold outlets located in central London. The agreement is expected to complete on 30 June 2014.

The consideration will be satisfied in cash. Net disposal proceeds will be used to reduce debt and reinvest in the estate.

For the financial year ended 17 August 2013, the pubs being disposed of generated earnings before interest and tax of £0.5 million. As at 1 March 2014, the pubs had a book value of £4.4 million.

The video at the end is interesting - Campaign Win: Reform of the Beer Tie

Restructuring Update

Update on the launch of the restructuring of the Punch A and Punch B securitisations

On 18 July 2014, Punch announced that covenant waivers had been approved in respect of the Punch A and Punch B securitisations. These waivers are subject to various conditions, including that a restructuring implementing the proposals announced by the Company on 26 June 2014 is launched by 11 August 2014. This condition is subject to a cure period of up to 10 business days.

Punch announces that the launch of the restructuring has been delayed, as some additional time is required to conclude discussions between certain stakeholders, and for the documentation to be finalised. The Board believes that a restructuring on terms which are broadly similar to those announced on 26 June 2014 can be launched within the 10 business day cure period.

However, there can be no certainty that a restructuring will be launched within this period. The Board continues to believe that a consensual restructuring is required to avoid a near-term default in the Punch A and Punch B securitisations, which would have material adverse consequences for all stakeholders and, in particular, for shareholders.