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Key strengths
Punch Taverns is the leading pub company in the UK. We believe that the size and quality of our pub portfolio, its broad geographical spread and the services we offer represent a powerful proposition for potential licensees.
Highest quality pub portfolio
Derived from the core estates of two of the five major UK brewers when the industry restructured in the 1990s, our portfolio is of a high commercial quality measured by turnover per pub, profitability per pub and operating cash flow per unit of sales. We believe high levels of pub profitability further assist us in attracting high-quality licensees.
Demonstrable ability to recruit, retain, train and develop entrepreneurial licensees
We actively recruit talented and motivated individuals through a dedicated recruitment team, targeted marketing and a recruitment website which screens applicants against desired core competencies. The skills and knowledge to run a successful pub are enhanced by an award-winning training programme including a mandatory induction course and a voluntary advanced training course, both of which incorporate nationally recognised qualifications accredited by the British Institute of Innkeeping.
Simple, adaptable, resilient business model
No single pub accounts for more than 0.15 per cent of our turnover and no single licensee accounts for more than 0.7 per cent of our turnover. Additionally, each licensee is able to adapt quickly to local market conditions without the bureaucracy of a centralised decision-making process. We believe our business model spreads risk and is therefore able to support the service of substantial borrowings.
Experienced and motivated management team
Our management team of directors and executive officers have a combined total of more than 70 years spent working in the industry.
Strong record of identification and integration of acquisitions
We have grown our business through the acquisition and integration of a number of leased and tenanted pub portfolios, the conversion of managed pubs to leased and tenanted operations and an active programme of acquiring individual pubs. We believe that our acquisition and integration record makes us highly attractive to potential vendors of pub portfolios.
Proven capital investment strategy
Our policy is to invest in pub refurbishment and development with licensees to improve the quality of the pubs and their appeal to consumers and to increase profitability. Our approach to making such capital investments has resulted, in most cases, in higher profits per pub.
Stable revenues and cash flows through long-term Agreements and predictable consumer spending patterns
The fixed nature of our rental income and the relative insensitivity of beer demand to economic conditions enable us to benefit from stable revenues and cash flows and our consequent ability to develop long-term plans.
Purchasing economies of scale
We use our massive buying power to secure the best possible deals for our licensees, which are actively marketed through our monthly promotions brochure Connect and our buying guide. We also use our ability to buy at the best possible price to pass on industry leading discounts, off invoice, on a range of beers on certain agreements. |
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