World Cup helps Enterprise Inns achieve its goals

SOLIHULL-based pubco Enterprise Inns Enterprise Inns has seen its fourth consecutive quarter of like-for-like net income growth and remains optimistic for the remainder of the year after being boosted by events such as the World Cup.

In a trading update covering the 44 weeks to August 2, 2014, the company said trading during the period had been in line with expectations with total estate like-for-like net income for the 44 weeks growing by 1.3%.

Growth in the third quarter was said to be particularly encouraging with like-for-like net income up 2.1%, assisted by on-going operational initiatives and the FIFA World Cup.

The first five weeks of the fourth quarter have produced trading in line with last year which is as expected given the more challenging comparative period, resulting in like-for-like net income growth of 1.5% for the first 18 weeks of the second half.

It said it remained focused on delivering operational initiatives which are being implemented to continue to improve our trading performance. The rate of business failure continues to fall and it said it was making further progress with the provision of additional services to its publicans which are aimed at supporting publican profitability.

Cash flow and balance sheet metrics remain in line with expectations and it said it expected to meet full year guidance of net proceeds from asset disposals of £70m, which will be used to fund a capital investment programme.

Strong cash generation from operating activities will continue to be used to reduce debts and the company said it anticipated total net debt would be reduced to £2.4bn by the year end.
 
Simon Townsend, Chief Executive Officer, said: “We are pleased to report continued progress for the business with the delivery of our fourth consecutive quarter of like-for-like net income growth. The final quarter of the year will be measured against tougher comparatives but we are encouraged by the start we have made and remain comfortable with our full year expectations.
 
“We are focused on constantly improving the quality of our pubs, continuing to direct an increased proportion of capital investment toward initiatives which will grow income, while reducing the level of business failures and supporting our publicans to grow their businesses. Through these initiatives we believe that our progress will be maintained.”