Beer drinkers cheer pubco Enterprise Inns
More people drinking its beer has cheered Solihull pubco, Enterprise Inns.
In a trading update covering the 18 weeks to February 4, the group said it had made a good start to the financial year with its leased and tenanted estate, Ei Publican Partnerships, reporting like-for-like net income growth of 1.6%.
“This steady improvement in performance has been achieved as a result of continued stabilisation of rental income and growing income from beer sales, driven by targeted capital investment, operational support and commercial benefits provided to our publicans,” it said.
The group, which stages its AGM later today, has also announced that it intends to change its name.
Following the AGM, the company will be renamed Ei Group plc. It said this reflected the transformation of the company’s business from a single, predominantly leased and tenanted operation, to a portfolio of businesses comprising a variety of operating models and trading styles designed to optimise the value derived from the asset base.
On the progress of the business as a whole, it said its strategic plan for the business was progressing well.
“We expect to be operating in the region of 400 commercial properties by the financial year end. Of these, 181 traded throughout this reporting period and the prior period, delivering like-for-like net income growth of 2.1%,” it said.
“The trading performance and expansion of our managed house businesses is progressing in line with our expectations and we continue to expect to have in the region of 250 managed houses operational by September 30, 2017.”
Simon Townsend, CEO, said the group had been encouraged by the good start to the year.
“We are delivering continued like-for-like growth in our leased and tenanted business and an encouraging performance from our commercial property and managed house businesses,” he said.
“Despite potential headwinds from legislative cost increases and the new regulatory environment we remain confident that we are on track to deliver our expectations for the full financial year.”
Regarding the name change, he added: “We believe the time is right to recognise that we now have strong, differentiated divisional businesses operating under a group umbrella and move forward under our new name of Ei Group plc.”
