Punch Taverns makes good fist of summer

Updated: 18:43 EST, 24 August 2010

Shares in Punch Taverns frothed up by 9pc after Britain's biggest pubs group forecast stronger than expected profits for the year.

The pubs group said its underlying sales increased by 2.6pc in the 12 weeks to August 21, helped by good weather in June and July, the World Cup and increased investment in chains such as Fayre & Square and Chef & Brewer.

On the pull: Good weather and the World Cup helped give Punch a boost

Formerly known as Spirit Group, Punch's managed pubs business has refurbished about a quarter of its 800 properties in the past year.

Panmure Gordon raised its full-year profits forecast to £131.5m from £128.2m after Punch said it expected its earnings for the year to be 'marginally ahead of our previous expectations'.

Punch said it was encouraged by the current trading momentum but added that the near-term trading outlook 'continues to be uncertain, particularly given the potential impact of the June budget on consumer spending into next year'.Shares increased by 7.2p to close at 85.4p.