Punch upbeat despite profits fall

The owner of Chef & Brewer and Fayre & Square pubs has reported a further slump in profits and announced more details of its plans to split the business into two as part of its radical restructure.

Punch Taverns, which has more than 6,000 pubs, said underlying profits fell 8.4% to £206 million in the six months to March 5 as its leased division saw a 7% decline in like-for-like net income.

But the group, which last month announced plans to demerge its Spirit managed pubs division, said there was an improving trend on the previous year and that it remains confident of making further progress in its second half.

The group also announced that its chief executive, Ian Dyson, will become boss of the Spirit division following the demerger, while Roger Whiteside, currently managing director of the leased division, will become chief executive of Punch.