Crunch hits pub firm hard
ENTERPRISE Inns today reported a 21% fall in annual profits and warned it expected the current financial year to be just as challenging.
The UK’s second largest pubs firm, with an estate of 7,399 pubs worth £5.4bn at the end of September, said the economic climate and further disposals would result in another decline in trading profits in the short-term.
Pre-tax profits for the year to September 30 fell to £208m from £263m a year earlier, but chief executive Ted Tuppen said this represented a creditable result in “very difficult circumstances”.
Pre-tax profits after exceptional items - which included the movement in valuation of the pub estate and related assets of £151m - was £11m compared to £209m a year ago.
Enterprise said the majority of its pubs continued to trade well, with 83% of the estate producing £448m of net income in the year, down 3% from last year.
There were significant regional variations in performance, with average net income per pub down by 11% in the North, 9% in the Midlands, 5% in the South and 3% in London.
The group disposed of 368 pubs in the year and said it expected a similar or higher level in the current year as the economic environment accelerates the demise of unviable pubs.
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