Look at it!

Smoking ban sends Punch Taverns reeling


Punch Taverns, Britains largest pub company, announced a 24 per cent decline in first-half profits as the smoking ban and a crash in consumer confidence kept drinkers at home.

The operator of 8,400 leased, tenanted and managed pubs said that like-for-like sales for its leased businesses were down by 2 per cent, with like-for-like sales of the core managed estate declining by 2.8 per cent.

Interim results showed that profits of 133 million, a 1 per cent increase since last year, were reduced by a 19.2 million loss on interest-rate swaps and a one-off redundancy charge of 5 million.

Punch said that the results reflected challenging market conditions pointing to falling consumer confidence.

It said that recent rises in household expenditure such as increases in food and fuel duty, and rising pressures on mortgage repayments, had impacted on the disposable income of its customers.

Punch also said that its profits had been hit by the smoking ban implemented in 2006, which had reduced beer sales over the winter months.

A MUST TO BUY AT 150P

Why ?

in order to get stopped out at the current price? :)

66p...quite amazing.

In auction again down 17.5%

Huge amount of debt; flawed business model; the words barge and pole spring to mind.

keep selling to 30p imo.

have had a buy order in at just under 30p for a little while now ;-0 - won't be long

Going bust. Don't touch.

you short then?

I've changed my mind..5p.

Shares Mag tips them as a recovery stock if interest rates continue to fall. The theory is that their debts will become easier to finance. Of course, that is assuming they don't go bust!

of course they are right but not a buy yet.

How's the fall in interest rates going to help them? That assumes that their bankers will oblige by reducing their borrowing rate (as risk is increasing), also that they will maintain or extend their facilities.

also, as the economic problems continue, surely their revenue will also fall further. There is, interestingly, evidence that pubs can do well at times of economic woe as folks need the solace of booze even more than usual. Trouble is for them, it's so cheap to drink at home now. I haven't been to many nice Punch Taverns either!!!

I've changed my target from 5p to 2p.

pub groups are currently only good for shorts ..... weatherspoons seems to be bucking the trend, but just look around and see how MT everywhere is

I agree cynic I was in Cambridge last week some pubs have closed others up for sale and only Wetherspoons(the biggest in UK) was busy.

A pint is 100p cheaper than other Cambridge pubs.


I can see Punch ruined.

Doom and gloom all round !.