PUNCH Taverns has signalled it is on track to meet full-year profit expectations after earnings narrowed in the first half.

The pub company, which leases about 170 outlets in Scotland, reported earnings before interest, tax, depreciation and amortisation (EBITDA) of £105 million in the 28 weeks to March 7. This compared with £108m at the same stage last year.

In its first results since restructuring its debt pile in October, Punch said like for like income across its core estate grew by 0.5 per cent.

It declared it was on track to guidance meet full-year EBITA guidance of between £193m and £200m.

Punch said its restructuring had reduced net debt by £0.6bn, adding that it has secured £1.5bn of debt against its largely freehold estate, valued at £2.1bn in August.

It confirmed new chief executive Duncan Garrood would be arriving as chief executive in June.

Analyst Paul Hickman at Edison Investment Research suggested Punch's "horrible history of indebtedness stretching back to 2008" is on track to being turned around.

He noted net income was continuing to move in the right direction, stating that "most of this cash is now appropriated to debt service and reduction for some years to come.

"But this is the best use Punch could make of its cash, given its still heavily indebted balance sheet," he said. Mr Hickman added: "There is much to do, and Punch's management under executive chairman Stephen Billingham appears to have the appetite to do it, even before the arrival of the new CEO in June."

Shares closed up 1.62p at 105p.