Trading Statement

RNS Number:8689R
Honeycombe Leisure PLC
10 November 2003







10 November 2003


                             HONEYCOMBE LEISURE PLC

                       PRE CLOSE PERIOD TRADING STATEMENT

             NEW MANAGEMENT AGREEMENTS WITH PUNCH & OTHER OPERATORS


Honeycombe Leisure PLC ("Honeycombe" or "the Company"), the leading North
West-based pub Company, is pleased to announce that the Company has continued to
improve its like-for-like sales trends and has traded overall in line with
expectations during the six months to 27 October 2003.  The Company anticipates
announcing its interim results in January 2004.


Current Trading

Underlying like-for-like sales performance for the half year is 3% up after
factoring in the effect of last year's World Cup, and this is a creditable
outcome in a competitive environment.  Margins continue to improve in both our
wet and food offerings and following new banking facilities being agreed,
Honeycombe now has the opportunity to further improve its beer buying terms
through repaying an existing brewery loan.





New Banking Facilities

As announced on 3 November 2003, Honeycombe has agreed new banking facilities
with Bank of Scotland.  These new facilities have enabled Honeycombe to pay-off
two inherited fixed rate hedging instruments; will allow the Company to benefit
from a reduction in margins on interest payments and with the on-going 'churning
of our estate', they are expected to be of considerable material benefit to the
Company.  Bank of Scotland's continued support of the Company is a demonstrable
measure of its confidence in the Company's progress in reducing its overall
level of gearing and in its development of increased income and earnings from
running sites owned externally.


Management Contracts

Nectar Taverns ("Nectar")

Honeycombe's management agreement with Nectar Taverns, which was the first of
the Company's partnerships to run sites owned externally, is continuing to gain
momentum in terms of increased income and earnings and is benefiting from
Honeycombe's selective acquisition policy.  Nectar to-date has purchased 14 new
sites, 9 of which are open and fully operational.  A further 5 are under
re-development and these sites are expected to be open by Christmas.  The
expected fee generated from Nectar's managed estate will be c.#300,000 this year
based upon a 50 per cent investment of Nectar's #11m facility with a return on
capital running at over 20%.




Punch Taverns ("Punch")

Following Honeycombe 's sale and manage-back agreement with Punch announced on
16 February 2003, the Company is pleased to announce a further extension of its
relationship with the UK's largest pub owner with contracts being exchanged to
manage Punch's Pooley Bridge Hotel, a high quality trading unit in the Lake
District.  Completion is anticipated on 19 November.  In view of the continued
state of flux in our industry, Honeycombe looks with some confidence on its
ability to capitalise and further consolidate on its partnership with Punch and
with other operators, to secure more management agreements and so grow this
increasingly profitable side to its business.



New Trading Unit

Honeycombe is also pleased to announce that it has acquired a long term
management agreement on The Yew Tree at Bunbury, a quality Tavern in Cheshire.
The Company expects to invest #100,000 into the site, with a return on capital
anticipated to run at over 20% for the first year and then to rise steadily
thereafter.  The Company is exploring other opportunities with the current
owner, for whom it already manages The Swan at Tarporley.





Sandy Anderson, Chairman, commented:

"I am delighted with the significant progress that has been achieved over the
period, in which we have developed the Company both operationally and
financially.  Our developing relationship and management agreements with Punch
and with other large and small operators and the increasing industry trend
towards the separation of ownership and management of pub assets is beginning to
pay significant dividends and we look forward to energetically building this
profitable  side of our business.



"I look forward to Honeycombe further applying its regional knowledge and
management expertise to grow both our core and managed estates in this exciting
phase in the Company's development."




Enquiries to:

Honeycombe Leisure PLC
James Baer/Bryan Wardman,         Tel: [phone]
Joint Chief Executives

Holborn
Tarquin Edwards/Chris Steele      Tel: [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTFBLFFXFBXFBK