PUBS group Punch Taverns has reported record profits just over a year after its £1.2bn acquisition of Hartlepool-based Pubmaster.

Punch, which has nearly 500 sites across the North-East, said it had £100m to fund acquisitions of independent pubs.

It did not rule out buying pub companies in the region, including Teesside-based New Century Inns, saying it was always looking for pubs to buy, either individually or in a group.

The UK's second-largest pub company increased its sites in the North-East from 120 to 481 when it bought Pubmaster at the end of last year.

In the past year, it has spent more than £1.5m refurbushing North-East pubs.

The acquisition saw the number of pubs across the UK owned by the company rise by more than 3,000.

Punch Taverns warned of more challenging markets ahead, but said it remained confident as it posted a 39 per cent rise in profits.

The Staffordshire-based group said there had been some recent suggestions that consumer demand had cooled.

Last month, rival Wolverhampton and Dudley Breweries said the consumer spending outlook had become more cautious in recent months.

However, Punch said it had continued to do well thanks to ongoing underlying organic growth in sales and profits across its estate and a strong performance by its recently acquired Pubmaster and InnSpired pubs.

Half-year pre-tax profits before goodwill and one-off items rose to £103m from £74m a year ago.

Group turnover increased by 33 per cent to £404m after including the Pubmaster and InnSpired pubs.

Francis Patton, customer services director for Punch, said: "It was a very good decision to buy Pubmaster.

"We will carry on with individual acquisitions - we have recently bought seven individual pubs in the North-East.

"We have this £100m to spend on individual acquisitions this year, and if we want to fund bigger acquisitions, we can raise some quite large sums of money if needed."