WHEN Punch Taverns took over Hartlepool-based Pubmaster, it almost doubled the size of its estate.

However, despite gaining the valuable network of pubs and inns across the North-East, Punch also inherited an expensive problem.

Years of under-investment in the Pubmaster pubs meant that some were in desperate need of refurbishment.

One of these was the Black Swan, in Darlington. The Mucky Duck - as it became known - did not have the best reputation.

Punch recruited tenants Simon and Beverley Wilson, who spent a year trying to improve the name of the pub.

Three months ago, Punch spent £154,000 making the bar and lounge into one room, opening up the whole space and converting the feel of the pub, making it less enclosed and threatening.

Clear-glass windows were put in so that passers-by would be able to see in, and would be more likely to stop for a drink.

Since then, takings have shot up by 70 per cent, even in the traditionally quiet month of January, and the pub is attracting theatre trade - stars and audiences alike - from the opposite Darlington Civic Theatre, something that would have been unheard of three years ago.

From having none, there are now three darts teams, and community groups meet regularly at the pub.

Punch regional manager Chris Welham said: "Pubmaster was traditionally under-invested. It was a great estate of pubs, but the way the business was funded meant there wasn't much opportunity for investment.

"At places like the Black Swan, we think it was targeted at the wrong market, and it is just case of attracting the right market, by talking to the retailer landlord.

"This isn't just us spending money, it's thinking about what is necessary, but still retaining the traditional feel of the pubs.

"Although Punch is a big company, we are all about quick decision-making.

"So, in the North-East, we will decide what a pub needs doing, and get on with it."

It is an interesting time for the pub trade.

Last year, the Government relaxed licensing laws and many of Punch's pubs now open until midnight or 1am at the weekends after applying for extended hours licences.

But Mr Welham said that, while takings had increased a little, it was too early to say what the full impact would be.

A proposed smoking ban is the next piece of Government legislation to be wafted in the direction of the pubs.

In the Black Swan, the Wilsons have banned smoking at the bar to protect staff, and Mr Welham says this is typical of the small self-regulation measures tenants are putting in place.

"We wanted to self-regulate and to demonstrate to the Government that the industry was capable of self-regulation," he said.

"We could potentially end up with a complete ban and we need to start drawing up an action plan now. If we do get to a situation where a total ban comes in, then at least we will have started to move in the right direction."

In Ireland, he said that pubs saw a drop in trade following its ban, but that has started to pick up again.