Enterprise Inns strengthens board with former M&B chief Fowle
SOLIHULL-based pubco Enterprise Inns has boosted its board with the appointment of the former CEO of fierce rival, Mitchells & Butlers.
In an interim management statement for the 18 weeks to February 1, 2014, Enterprise said Adam Fowle would join the board as a new non-executive director immediately following today’s AGM. He will also serve on the Remuneration, Nomination and Audit sub committees of the board.
Fowle has more than 20 years’ licensed retail experience. He is currently chief executive at Tesco Family Dining and was previously chairman of Bramwell Pub Company and prior to that CEO at Birmingham-based M&B. He has also served as a retail director at Sainsbury’s and Bass Leisure.
Robert Walker, Enterprise chairman, said: “We are delighted to welcome Adam to the board. We set out with the specific target of appointing a new non-executive director with customer service and strategic skills. In Adam we have secured that. He brings substantial industry and service sector knowledge and expertise which further strengthens the board.”
Fowle added: “Enterprise Inns is a great business. The last few years in the pub sector have been challenging but Enterprise has made real progress and I look forward to contributing to its further success.”
The AGM also sees the retirement of the company’s chief executive, Ted Tuppen. He will be succeeded by Simon Townsend, currently Chief Operating Officer. The board thanked him for his “outstanding contribution and leadership” since founding the company over 20 years ago.
In a trading update to coincide with the AGM, Enterprise said trading in the first 18 weeks of the financial year had been encouraging and was in line with expectations. Like-for-like net income across the whole estate for the year rose 1% on the prior year, which it said continued the growth momentum achieved in the final quarter of the previous financial year.
“We are focused on continuing to implement actions that will sustain this trading performance and, despite market conditions remaining volatile and challenging, we are confident that by enhancing our pub estate and continuing to support our publicans we are providing the appropriate foundations for delivering sustainable net income growth,” it said.
“The quality of our estate is being improved through the disposal of unsustainable pubs and reinvesting the disposal proceeds in the retained business.”
It expects the disposals programme to generate around £70m in the current financial year. In the first 18 weeks of the financial year it has disposed of 84 pubs, generating £31m.
“We continue to improve our estate and drive returns through capital investment with an expected investment of up to £65m for the full year. In the first 18 weeks of the financial year we have invested £25m in support of our letting programme and growth-driving enhancements,” it added.
Its new £150m Forward Start Facility began in December and is available through to June 2016. It has utilised these facilities to repay the £60m corporate debenture which matured on February 3, 2014. In line with expectations, bank borrowings are now at £104m, down from £301m a year ago.
