Challenging trading conditions result in Enterprise Inns profit slump
SOLIHULL pub company Enterprise Inns has seen a marked dip in its profits in the six months ending March 31.
Its interim results for the period reveal the firm revealed profits before tax and exceptional items of £55m compared to £64m in the first half of last year.
Like for like income for the whole estate was also down, by 4.2%.
Net proceeds from disposals were £54m compared to £89m in H1 2012. Enterprise Inns says it expects £150m of proceeds for the full year.
The firm said strong cash generation enables continued progress delivering its debt reduction strategy with net debt at £2.7bn (H1 2012: £2.9bn) and expected to reduce to £2.5bn by the financial year end.
Ted Tuppen, chief executive said: “Trading in the first half of the year has been particularly challenging. The heavy snowfalls in January and the coldest spring for many years have not encouraged customers to venture out to their local pub.
“Against this backdrop we are satisfied with the results for the first half of the financial year and are encouraged that in recent weeks we have seen a recovery in trade.
“Our target continues to be the delivery of like-for-like net income growth across the entire estate during the second half of this year.”
Enterprise Inns has agreed terms with Arqiva to provide free Wifi to Enterprise pubs.
And it will shortly be launching a new strategic partnership with Brakes as part of a plan to increase support for pubs which offer food. The “Enterprise Pub Club” is intended to provide the publican with access to improved pricing and a broad range of on-site food support services including menu design, gross margin management and equipment provision.
