Property revaluation plunges Enterprise Inns to £65m annual loss
A REVALUATION of its pub portfolio has had a major impact on Solihull-based pubco, Enterprise Inns, resulting in a £65m annual loss for the pubco.
Enterprise, the largest pub owner in the UK, said the loss, which compared with a £30m surplus last year, was after net exceptional charges of £162m (2014: £65m) due to the revaluation, which saw the value of the overall estate decline 2.7% (2014: a decline of 1.9%).
Things could have been worse save for a strong final quarter which helped to boost full year performance.
In the full year to September 30, 2015, the business saw like-for-like net income growth of 0.8%; aided by growth of 1% in the final three months.
EBITDA before exceptional items was £296m (2014: £302m), which the group said was in line with expectations following the impact of planned asset disposals.
Pre-tax profit and exceptional items increased to £122m (2014: £121m), while adjusted earnings per share were up 2.1% at 19.4p (2014: 19.0p).
Strong cash generation enabled further net debt reduction, which declined to £2.3bn (2014: £2.4bn).
On the operational side, the company said the strategic plan for the business was on track.
It said delivery of the plan would ensure it could best serve its publicans and customers while providing a clear path to maximising shareholder value through the optimisation of returns from every asset within the estate.
Commenting on the results, Simon Townsend, CEO, said: “We are pleased to report further operational progress and a second, successive full year of like-for-like growth in net income across our leased, tenanted and free-of-tie estate. This has been achieved by maintaining a relentless focus on the many operational activities and initiatives with which we are supporting our publicans to improve their profitability. Trading in the first six weeks of the new financial year has been in line with our expectations and continues to maintain our growth momentum.
“While the market in which our pubs operate remains highly competitive, and as we prepare for the implementation of new legislation in 2016, we are encouraged by the continuing momentum of our business, reflecting the exceptional efforts of our publicans and the strength of our relationships with them.”
