Punch - comment

Not so exciting for bonds. The presentation could have been written by Donald Trump himself. Everything is strong, and bonds seem to be friendly today. But we had higher expectations. Revenues were only £2m below ours, but expenses are running ahead with €-5m extra in the quarter. So the £27m OCF was already light by £-10m. Further, acquisitions of £-10m and a heavier investment in the existing estate by €-5m flattened FCF, and interest had to be paid in the quarter. We understand it's time for investment in the business and the weather is great, but we are back to the equity taking pub bonds for a ride again.