Flat results from Enterprise Inns as disposal programme ends

SOLIHULL pubco Enterprise Inns has recorded reduced earnings for the six month period to the end of March. EBITDA was £168m (H1 2011: £179m).

But the group has managed to reduce its borrowings as a result of strong cash flows from both operating activities and its pub disposal programme.

Chief executive Ted Tuppen said: “Like-for-like income per pub in the substantive estate (which represents 94% of total pub income) was 1.5% ahead of the same period last year, with the entire estate reporting like-for-like income down by 1.6%. Our operational teams are fully focused on returning the total business to like-for-like income growth.

“We have been subjected to extremely challenging conditions during the past four years, with cost pressures, consumer weakness, political interference, pressure on asset valuations and the volatility of capital markets combining to make life difficult for ETI and its publicans.

“Throughout this period, we have remained committed to our strategy, consistently improved the quality of our pub estate and effectively managed our financial commitments whilst working hard to ensure that we attract, support and retain the best possible publicans to meet the challenges of the marketplace.

As we continue to move the business back into growth, we remain confident that, in the medium term, we will be in a good position to deliver positive returns to shareholders.”

Some £39m was spent during the period in its pub estate while £89m was raised from the disposal of pubs.

Enterprise Inns says it has now largely completed its accelerated disposal programme of assets which do not fit the future profile of the business.

This programme has generated cash proceeds of £264m from the disposal of 1,045 pubs over the two years to 30 September 2011.