PRE-TAX profits are down but post-tax profits are up substantially at Solihull-based pub chain Enterprise Inns.
In its preliminary results for the year ending September 30, 2010, the company saw profit before tax and exceptional items drop from £208m to £175m while profit after tax rose from £6m to £26m.
EBITDA before exceptional items were down from £450m to £405m while average net income per pub stable in second half stabilised at £63,900, down from £65,000.
Enterprise generated £270m proceeds from disposals, realising an exceptional profit of £52m, the firm said in a statement, and its net debt was reduced by £374m.
Lettings of its pub estate are up from 83% to 89% and it says it has installed new agreements to provide additional flexibility to attract and retain the best licensees.
Chief executive Ted Tuppen said: “We have delivered creditable results, hard won stability and genuine operational improvements in difficult circumstances.
“The economic environment is set to remain challenging and we do not underestimate the impact of the Government’s austerity measures and fiscal tightening which will affect both our licensees and their customers.
“However, the past year has demonstrated the resilience of the best pub operators in the industry and we believe that the profile of our estate, combined with the professionalism and flair of our licensees leaves us well placed to face whatever challenges the year ahead may bring.
“We remain confident that the business is in a sound position to deliver positive returns to shareholders over the medium term, including the resumption of dividend payments.”
Burton-based Punch Taverns has today announced that finance director Phil Dutton will be stepping down from the board following its AGM on December 17 and will leave the firm at the end of March. The company says it has begun a search for a successor and anticipates an orderly transition with a further announcement will be made in due course.
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