LOSSES at pub group Punch Taverns almost trebled last year after it slashed £663m from the value of its estate.

The UK’s biggest pub group, with more than 300 of its 7,600 leased and tenanted pubs in the North-East and North Yorkshire, cut the value of its estate to £5.4bn following the impact of recession and falling property prices.

Its annual losses rose to £176m for the 12 months to August 22 from £64.7m last year. Underlying profits – which exclude the impact of write-downs – fell 39 per cent to £161m.

Chief executive Giles Thorley said: “The continuing challenging market in which we operate makes forecasting difficult.”

Despite the losses, Punch has strengthened its balance sheet by cutting its debt pile by more than £1bn to £3.5bn during the year.

Its self-help measures included a £375m fundraising with shareholders to prevent it being forced into disposing of core parts of its pub estate.

Punch said current trading was in line with management expectations, but results have been hit by a combination of weaker beer sales, lower rental income and higher levels of support to its struggling licensees – running at about £1.6m a month throughout the year.

The Staffordshire-based group also pleaded with the Government to protect the industry after recent blows such as alcohol duty increases last year.