Company in the news: Punch Taverns

Punch Taverns is trying to dig itself out of a big hole. But this is no recovery play, says Phil Oakley.

Punch Taverns (LSE: PUB)has had a dramatic fall from grace. Its debt-fuelled business model saw it become Britain's biggest pub landlord during the credit boom. The bust that followed all but destroyed the company. And it is not out of danger.

Its finances are still a complete mess it owes £2.3bn of debt, but has just £119m of tangible equity, according to its last annual report.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.