Pub operator Punch Taverns has revealed that increased pub refurbishment activity and good weather conditions this summer are set to push annual pre-tax profits ahead of initial estimates.

The company, which is aiming to publish its preliminary results for the year to 21 August on 12 October, has seen like-for-like sales decline by 2 per cent in its managed division - Punch Pub Company - compared with 2009. However, the last 12 weeks of the 12-month period delivered a 2.6 per cent growth in like-for-like sales as summer trading showed signs of improvement.

A Punch Taverns spokesperson said: "We expect the trading outlook in the near term to continue to be uncertain, particularly given the potential impact of the June budget on consumer spending into next year. "However, we are encouraged by our current trading momentum and are confident that the business change programmes and continued management actions in both sides of our estate have strengthened the business."