Punch is no longer reeling on the ropes, but doubts remain over the fighting fitness of the UK’s biggest pubs group. A year ago, the viability of this symbol of credit-boom financial engineering was in question as it bowed under £4.5bn of securitised debt while the recession deepened a structural decline in beer drinking.

Punch’s debt has since fallen to £3.5bn, due to £414m in disposals, a £375m capital raising, and the fact it could buy back debt at an average 70p in the pound. Net debt of 6.7 times earnings before interest, tax depreciation and amortisation still sounds daunting, though the average life is 18 years at a 6.8 per cent interest rate, with no near-term refinancing needs. It should be able to use £400m or so of cash and disposal proceeds to reduce debt further this year.