PRE-TAX profits at Solihull-based leased and tenanted pub operator Enterprise Inns have fallen sharply.
In its interim results for the six months ended March 31, 2011, the company has posted a pre-tax profit of £61m, down from £91m, and a profit before tax and exceptional items of £74m, down from £86m.
Adjusted earnings per share have dropped from 12.6p to 10.8p and EBITDA have fallen from £204m to £179m.
Average net income per pub has remained unchanged at £31,200 but net debt has been reduced by £175m, with a new forward start facility of £625m now in place.
Chief executive Ted Tuppen said: “We have achieved a solid set of results, in line with our expectations.
“Headline numbers are impacted by a 9% reduction in the average number of pubs in our portfolio and higher leasehold costs, reflecting our successful sale and leaseback programme.
“I am pleased that average net income per pub has remained stable despite very challenging conditions across the pub sector during the first half of our financial year.
“The second half of the year has started well, with fine weather over Easter and the bank holiday weekend providing our publicans with a welcome boost to trade.
“Whilst we expect trading conditions to remain challenging, we are confident in our strategy and expect that the quality of our pub estate and the resilience of our publicans will ensure that we deliver results for the full year in line with our expectations.
“Our bank debt of £545m at the end of H1 is already well below the new forward start facility which came into force on May 16.”
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