Following its recent flotation, Punch Taverns (“Punch”) is today commencing the practice of issuing trading statements prior to its full year and half year close periods. Today’s statement confirms that trading for the financial year to 17th August 2002 was in line with the Board's expectations. Preliminary financial results will be announced in the week commencing 4th November 2002.

Like for like sales turnover increased by approximately 3% in the year, net of increasing discounts paid to retailers, and with a growing proportion of turnover received as rent.

Punch has made good progress with its key programmes to improve the quality and return on its estate and to help its retailers build their businesses.  Over 475 pubs benefited from development expenditure during the year, and some 600 retailers attended Punch training programmes, which won the National Innkeeping Training Awards in March.

In addition, a further 187 pubs were acquired in the year, bringing the total estate to 4,302, a net increase of 142 since August 2001.

Commenting on the year just ended, Executive Chairman Giles Thorley said:

“Punch has enjoyed a good year, meeting all its operating and financial targets and, in parallel, becoming an independent quoted company. The progressive adoption of the growth lease is both improving the quality of our earnings and enhancing performance incentives for our retailers.   Looking forward, we see good opportunities for further organic growth driven by our investment and training programmes, and by selective acquisitions.”

Enquiries:

Giles Thorley, Executive Chairman - 020 7868 2252

Note to Editors:

Punch Taverns is a leading leased and tenanted pub company.  As at 17th August 2002 the Company’s portfolio comprised 4,302 pubs located across Great Britain.  The Group was established in 1997 when the original Punch Taverns portfolio of pubs was acquired from Bass PLC.  Punch’s business has been enlarged over the years principally through the acquisitions of Inn Business Group and the Vanguard estate from Allied Domecq, as well as other incremental acquisitions.  The group generates income from three primary sources: sales of beer and other products to retailers (lessees & tenants), rent from retailers and profit sharing agreements with retailers for income from leisure machines.

IPO and De-merger of Spirit Group

In March 2002 Punch Taverns demerged the Spirit Group, comprising the managed pub business with 1,040 pubs.  Punch Taverns subsequently floated on the London Stock Exchange (Ticker: PUB), with full listing from 27th May 2002. Punch Taverns’ full year results announcement will include the results from both businesses until March, and will reflect costs of the demerger and flotation.  More detailed information can be found in the Global Offer listing particulars issued in May.

Ends