The chief executive of Punch Taverns sought to calm investor fears on Tuesday after the UK’s largest pub operator saw its shares drop more than 42 per cent this month on debt concerns.

In a trading update, Giles Thorley said performance for the third quarter was in line with expectations and dismissed market speculation Punch could be in breach of its banking covenants. “The rumours ... are simply, fundamentally untrue,” he told the Financial Times. “Our balance sheet continues to be strong and we do not anticipate any refinancing needs in the near term.”