World Cup and sunny weather boost Punch Taverns

Britain's biggest pubs firm Punch Taverns today toasted the World Cup and good weather but warned the future still looks tough.

The company, which has more than 7100 pubs in the UK, said football fans flocking to the pub to watch matches have boosted trading in recent weeks.

The sunshine has also helped, more than making up for a dismal performance in January when Britain was gripped by snow and ice.

But Punch, which is grappling with debts of £3.2 billion, remained cautious about the outlook.

"We expect the trading outlook in the near term to continue to be uncertain," it said.

"The tax rises and reduction in public spending announced in the recent Budget will inevitably put further pressure on unemployment levels, reduce disposable incomes and constrain consumer confidence."

Punch said it was "on track" to meet expectations for the year.

The City is expecting profits of £128.7 million.

Average earnings per pub in its tenanted estate, where pubs are run by publicans who pay rent, were down 5% in first 44 weeks of the financial year.

At pubs managed directly by the company, sales were down 2.7%, an improvement on the 3.4% fall seen in the first 28 weeks.