Enterprise Inns on course to meet full year targets
SOLIHULL pubco Enterprise Inns has said trading for the first 44 weeks of the year has been in line with expectations and the business remains on course to meet full year targets.
The total leased and tenanted estate like-for-like net income for the 44 weeks to August 1, 2015 grew by 0.6% and the group said it was particularly pleased to have delivered an eighth consecutive quarter of growth in the third quarter ended June 27, with like-for-like net income increasing by 0.5% despite the comparative period last year including the football World Cup.
“This performance has been achieved through a continued stabilisation of rental income and growing income from beer sales as favourable weather and improving consumer confidence have provided supportive retailing conditions for many of our publicans,” it said.
The group said the execution of its strategic plan, announced in May, was also on track. The plan aims to maximise shareholder value through the optimisation of returns from every asset within the group’s estate.
Enterprise said its leased and tenanted business was performing well as it enhanced the provision of operational support and commercial benefits to its publicans to help them grow their businesses. This support has contributed to the delivery of a further decline in the level of business failures, down 23% on the previous year.
The group has also increased the total number of managed pubs trading under its Bermondsey and Craft Union operations from 16 in May, to 22. The group will open its first Managed Expert pub in September, while it is on track to have 30 managed houses operational by the end of September.
The portfolio of quality commercial properties continues to grow as planned, increasing from 185 properties in May, to 206. This has increased the average annualised rental income from £53,000 to £55,000.
The group said that in line with previous guidance, it remained on course to invest around £70m across the total estate with 43% of investment directed towards income growth opportunities. Disposal plans also remain in line with expectations to deliver £75m of proceeds for the full year.
It has also been busy recruiting people to fill a number of additional senior roles, an approach that has seen it appoint Karen Baskett, Operations Director, Bermondsey Pub Company (formerly with Mitchells & Butlers), Miles Selby, Procurement Director (formerly with Wells & Young’s and J D Wetherspoon) and Simon Glucina, Change Programme Director (formerly with LEK Consulting).
Simon Townsend, Enterprise CEO, said: “We are focused upon the successful execution of our strategic plans. The first priority is to ensure that our reinvigorated tied tenancy business continues to perform well. It is pleasing to have maintained our growth momentum with like-for-like net income growth achieved for our eighth consecutive quarter.
“Trading performance is on track to be in line with our expectations for the full financial year.
“We have made good progress increasing the number of managed pubs in the estate and growing our portfolio of commercial properties. We are continuing to invest in the estate and to support our publicans. We expect to make further progress on the delivery of our strategic initiatives in the coming months and will be providing a further update when we present our preliminary results in November.”
