Pub group’s £3m investment in Scotland as profits rise

Pub and hotel operator Punch Taverns announced plans to invest more than £3 million in its Scottish estate over the next 12 months.

The investments are likely to create 250 new jobs across its leased and tenanted pubs, bars, restaurants and hotels.

The news came as Punch reported a fall in underlying earnings from £105m to £94m in the first half of the year.

Like-for-like net income grew 1.6% and average profit per pub was around 3% higher than a year earlier.

The firm sold off a number of less profitable pubs to cut its £1.4 billion debt.

It has dispensed with £288m-worth of its estate over the past 18 months.

Duncan Garrood, chief executive of Punch Taverns, said: “We are making good progress delivering on the strategy we set out in November 2015.

“We have launched new operating models, renewed our focus on customer service and delivered improved support to our publicans.”

Scottish operations director Brian Davidson said the group is committed to working in partnership with publicans to build a flourishing pub and hotel estate.

He added: “Scotland boasts a wealth of talented entrepreneurs who are looking to develop their own business.

“We can offer a range of quality sites together with the backing and support of a major national operator.”

Its £3m investment plans include hotels in Inverness, Dornoch and Galashiels, and pubs in Scottish towns and cities.

Investment is planned for Lauders in Dunfermline, the Fife Arms in Kirkcaldy and the Dunblane Hotel.

Spending has already taken place at Tonic Bar in Dundee and Steadings in Kirkcaldy as part of a programme which saw major upgrades of hotels.