LONDON (dpa-AFX) - British pubs owner Punch Taverns Plc (PUB.L) Friday reported a loss for its first half, hurt by lower revenues and a charge related to reclassification of an interest rate swap. Shares are currently up about 9 percent.
However, the company stated that it experienced improving trends in its underlying business and expects to make further progress in the second half of the year. The firm also said it is on track to meet its full-year profit expectations.
Revenues for the period decreased to 243.3 million pounds from 264.6 million pounds in the prior year.
During the period, the company incurred a non-cash charge of 39 million pounds, related to reclassification of an interest rate swap following announcement of its capital restructuring proposals on February 7, 2013.
Finance costs were 128.3 million pounds, up from 90.4 million pounds a year earlier. Net underlying finance costs decreased 4 percent from the prior year.
For the 28 weeks ended March 2, the company posted a pretax loss of 16.7 million pounds, compared to a profit of 30.2 million pounds in the previous year. Underlying pretax profit declined to 26.2 million pounds from 33.3 million pounds a year earlier.
On a per share basis, loss was 2.0 pence, in comparison with earnings of 3.7 pence per share reported last year. Underlying earnings were 3.0 pence, while it was 3.8 pence per share last year.
Stephen Billingham, executive chairman of the company stated, 'Our profit performance for the first half of the year has been in line with management expectations, with improving trends in the underlying business...'
The company said it is progressing with discussions on its capital restructuring and continues to believe that the same can be launched in the first half of 2013.
PUB.L is currently trading at 11.57 pence, up 0.95 pence or 8.94 percent, on a volume of 280,492 shares on the LSE.
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