Takeover powers Punch Taverns

PUNCH Taverns, the 7,371-strong pubs group, received a strong boost to sales and profits from last year's £1.2bn takeover of rival Pubmaster and today promised more to come.

Chief executive Giles Thorley said: 'This was another period of excellent growth which clearly demonstrates the strength of our business model and the benefits that acquisitions bring. Pubmaster is bedding in well and we will see further upside as our management techniques are implemented.'

Sales grew 39% to £303m in the six months to 6 March, including 14 weeks from Pubmaster.

Pre-tax profits before exceptionals rose 30% to £72.5m, with Pubmaster's operating profit contribution of £29.6m. But exceptional items, mostly relating to the takeover, came to £16.8m.

Earnings rose 19% to 23p a share, out of which a dividend of 2.9p will be paid.