Suzy Jackson, regional operations director for Punch, which owns more than 600 pubs in Greater Manchester, Lancashire and Cheshire, said the consumer downturn, the smoking ban, and the recent tax hike on alcohol, made life 'pretty tough'.
She said: "I can't rememember the industry ever facing as many issues at the same time as now. However we are continuing to invest, and I am optimistic about the region's prospects - we have got the best pubs."
Nationally, Punch owns 8,500 pubs. The majority - 7,581 - are leased to independent management teams, while it has 868 under direct management.
Chief executive Giles Thorley said the duty hikes, which included 4p on a pint of beer and 55p on a bottle of spirits, would not achieve the goal of reducing binge drinking but would drive people instead into the arms of cheaper supermarkets.
He said: "I think it will be detrimental to the pub industry."
Punch is backing an industry-wide campaign to bar the chancellor, Alastair Darling, from Britain's pubs. Despite the challenges, Punch saw profits rise one per cent to £133m for the 28 weeks ended March 1.
Underlying profits per pub were up 10 per cent in the leased estate, and four per cent in the managed arm, as a result of disposals.
Despite tougher trading conditions following last summer's smoking ban in England and Wales, Punch said average licensee profitability had risen by 11 per cent, with average weekly sales up from £13,000 to £16,000 for a managed pub.
Last week talks involving rival Mitchells & Butlers, came to nothing. Mr Thorley said: "At this stage we are not working on anything."
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