Companies: PUB   

Shares in the pub company, which had dropped by nearly a third since last year's flotation at 230p, soared 16 per cent after releasing better than expected interim figures. The market believes the original syndicate of venture capital backers, who still hold 50 per cent of the shares, will want to reduce their stakes when all their sales restrictions are lifted this November. Punch's youthful chief executive Giles Thorley, a former financier with Nomura, is not so sure. He points to the steady growth in his 5,000-strong estate of leased and tenanted pubs. In the 28 weeks to the end of February like-for-like sales at the 91 per cent of Punch pubs owned for two years or more rose two per cent. This is better than many rivals, particularly those in the depressed managed pub sector. However, total turnover rose six per cent to £218 million and pre-tax profits increased 17 per cent to £55.6 million. Thorley said this was due to the innovative financing arrangements in place, and the acquisition of 200 more pubs. House broker Merrill Lynch has raised its forecast earnings for the current year to an optimistic 38p per share, which still puts the stock on a forward p/e of just 5.6, even after the recent share price rise.