 Punch has been preparing for the UK-wide smoking ban |
Shares in Punch Taverns, the UK's biggest pubs group, have slipped despite a rise in profits. Pre-tax profits before one-offs rose 12% to �130m in six months to 3 March, as the firm continued to benefit from its 2006 purchase of Spirit Group.
But its shares fell as investors were unimpressed by a lack of plans to free up cash from its �7bn property estate.
Punch added it was well-prepared for the UK-wide smoking ban which could have a major effect on the pub sector.
The group has been working hard to provide outdoor smoking areas and to improve facilities for non-smokers.
Smoke ban fallout
Punch said it was too early to assess the impact of the recent ban on smoking in public places in Wales, which came into force in April. A ban in England begins in July.
However, Punch did say it was learning from its experiences in Scotland - where it blamed a smoking ban for a 1.5% dip in sales in the first half of last year after new rules came into force in March 2006.
Shares in the group slipped almost 4%, or 52 pence, to �12.52 in morning trade on the London market.
Punch's pub estate now stands at more than 8,400 after a raft of sales and acquisitions over the past year, including the takeover of the Spirit Group managed pubs last January.
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