FINAL rival bids of around £47,000 are being considered for the lease of The Deramore public house in Heslington, York.

Punch Taverns has started talks with two separate bidders for the ten-year tenure lease on the pub frequented by locals, students from the nearby University of York and business people.

The Deramore, with its large beer garden and car park, is in the first phase of 212 pubs - 43 of them in Yorkshire - which Punch Taverns is transferring from managed to leased status. A spokeswoman for agents Christie & Co said: "There was strong interest over the three viewing days we have had since April and we are now negotiating with two bidders."

Meanwhile, Punch Taverns today announced impressive figures for 28 weeks to March, with pre-tax profits up 13 per cent to £116 million and turnover up 53 per cent to £619 million.

The results come in the wake of Punch Tavern's acquisition in January of the Spirit group and all 1,808 of its directly managed pubs.

It also comes in the wake of a huge refurbishment programme - £2.5 million so far in Yorkshire alone over the past six months - which has resulted in £260,000 being spent transforming the Burton Stone Inn in Clifton, York, from a local community three-room pub into a contemporary- designed establishment with extended menu and video for sports entertainment.

The group has also completed a £62,000 revamp at the Dawnay Arms, at Shipton-by-Beningbrough.

Janette Howgate, of Punch Taverns, said: "Out of 522 pubs that I look after, nearly a third - 168 - are in Greater York. Of these, 153 are existing leased pubs, plus 15 which we acquired from the Spirit estate.

"Punch sees the Spirit acquisition as a fantastic opportunity for entrepreneurs to enter the business by taking on leases wherever we put them on offer."

Also about to come on to the market in phase two of a transition from managed to leased pubs is the Ainsty, in Boroughbridge Road, York, where discussions are in progress with the manager.

Updated: 09:58 Tuesday, May 23, 2006