Admiral Taverns reduces estate by 477 sites to concentrate on 'core' community pubs

Admiral Taverns has reduced net debt by £76.7m to £223m having sold 477 sites during the year to May 2011.

The pub group said it had improved profit per pub and margins having shed underperforming sites to leave a "quality core". But due to the reduced size of the estate group turnover was down 12.6% at £106.7m and operating profit fell 15.1% to £30.6m.

Executive chairman Jonathan Paveley said it had been a "significant period of progress" in which the business had been refocused.

He added that despite wet-led pubs being out of favour they have only underperformed due to lack of investment.

"We believe the positive attributes of such pubs - freehold properties located in areas of large populations, habitual regular customers with low spends per visit, and strong cash generation - make an attractive long-term investment case, which will be recognised in time by the wider industry and investment community," he said.

Pub disposals, combined with the Picadilly acquisition, has meant the groups estate now stands at 1,480 pubs.

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By James Stagg

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