Punch Taverns, the troubled UK pub operator, has announced plans to raise £350m through a new share issue in a bid to further relieve the company's level of debt.

In its interim management statement for the 40 weeks to 30 May 2009, the company revealed that it had reduced its gross debt by £404m since the start of the financial year, helped by the recent disposal of a number of properties to rival pub companies. The company also reported that like-for-like sales in its managed estate have decreased by 1.2 per cent compared with the same period last year, while its leased estate has reported an 11.2 per cent decrease in like-for-like earnings.

Giles Thorley, Punch Taverns' chief executive, said that the share issue and interim results act demonstrates the company's "determination to move beyond the current challenging market conditions, to focus on fundamentals and continue to drive operational change."