Rain doesn’t dampen spirits at Enterprise Inns
SOLIHULL pub company Enterprise Inns has seen an improvement in trading despite the negative impact of record rainfall levels.
The firm saw like for like income per pub up 1.6% in the 44 week period to August 4 and down by only 1.2% in the total estate (compared to 5.1% in the same period last year).
Its disposal programme has also had a marked impact on the firm’s finances with proceeds in the total year to date of £148m. It expects full year proceeds to be in the region of £200m with an expectation of a further £150m next year.
In the financial year to date Enterprise Inns has sold 121 unsustainable pubs for proceeds of £26m. In December it completed a sale and leaseback package of 17 pubs for £24m and has sold 82 exceptional properties for proceeds of £98m.
Bank borrowings net of cash reduced to £364m (£446m at September 30 last year).
In a trading statement Enterprise Inns said: “The 18 week period since the half year has been interesting and challenging. The Jubilee celebrations in June provided a welcome boost to publicans in a similar fashion to the Royal Wedding in April last year. The UEFA European Championship in June also provided some assistance to trade but was significantly outweighed by the dampening effect on trade from the record breaking rainfall throughout the period.
“It is encouraging that despite such bad weather, the 18 weeks like-for-like income performance for the total estate has improved upon the first half.”
The firm said the Olympics is not materially impacting trading performance although the positive sentiment from continued British success should encourage customers to celebrate in their local community pubs.
“This year’s poor summer weather has undoubtedly affected trade for our publicans in the near term but our strategy remains clear and the quality of our pub estate combined with the resilience of our publicans will ensure we deliver results for the full year in line with our expectations,” it said.
