Pre-tax profits down at pub chain Enterprise

Published: 16 November, 2010

Pre-tax profits at pub chain Enterprise Inns, which operates around 7,000 pubs throughout the UK, fell from £208m to £175m while profit after tax rose from £6m to £26m.

The group's preliminary results for the year ending September 30, saw EBITDA down by 10% at £405 million, but average net income per pub was stable in the second half of the year and down by 1.7% at £63,900 for the full year.

Like for like net income on the leased estate fell by 2%, but the company raised £270 million from disposals and reduced net debt by £374 million to £3.3 billion.

Ted Tuppen, Enterprise Inns chief executive, 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."

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