Punch shares fall by more than a fifth

14 January, 2009

Punch Taverns shares were down more than 20 per cent today after revealing leased pub profits had fallen sharply in the 20 weeks to January 10, 2009.

Punch’s shares were trading at 45p earlier today, down 22 per cent on yesterday’s close. At one point they edged just above 41p, down 28 per cent.

At their highest point last year, in February, Punch’s shares were trading at 713.5p, but their value has since fallen dramatically as both the concerns about the trading through the recession and fears surrounding the group’s debt levels have gripped the investment community.

Today Punch revealed that like-for-like profits across its leased pub arm were down 12 per cent in the 20 weeks to January 10, 2009.

The group’s managed pubs had seen like-for-like sales down 2.5 per cent, bolstered in part by better than expected Christmas and New Year trading.

Shares in other pub stocks suffered today too. Enterprise Inns fell more than 17 per cent to 50.5p, while Greene King stock slid nearly seven per cent to 424p and its regional reival Marston's shares fell 6.5 per cent to 119.5p.

The FTSE All Share index was down four per cent, the FTSE100 - the leading stock index - was off by 4.2 per cent.