Punch Pubs has reported pre-tax profit for the 28 weeks to 22 February hit £5.4m, a strong rebound from losses of £36.3m recorded in the prior year period as revenue rose from £168.3m to £184.1m year-on-year.

The positive financial performance comes after Punch invested £28.4m on expansionary and maintenance capital, before securing the £25.4m acquisition of 35 pubs from operators including McMullen’s. 

“I am pleased to see continued revenue and profit growth across our business, reflecting the resilience of our community-focused pub estate and the entrepreneurial flair of our brilliant publicans,” said CEO Andy Spencer.

“These results demonstrate the strength of our business model, combining selective acquisitions, targeted investment and an expanding partnerships business. Despite current industry-wide headwinds, we remain excited about the long-term growth opportunity ahead.”

According to the statement, the return to profit stems from growth in Punch’s like-for-like estate driven by inflationary price increases and trade-enhancing investment, as well as growing profits from pubs transferred from leased and tenanted to pub partnerships.

The addition of 106 pubs to the company’s portfolio over the last two years also boosted revenue, while the operator also implemented a £5.1m cost saving plan.