LONDON (Alliance News) - UK pub operator Enterprise Inns PLC Thursday said it maintained the "positive momentum" of its previous financial year into the first 18 weeks of its new financial year, reporting like-for-like net income growth for its leased and tenanted estate of 0.3%.
However, that growth is slightly lower than the 0.5% like-for-like net income it reported for the fourth quarter of its financial year that ended in September, with Enterprise Inns citing a softening in beer volumes during January.
"We are encouraged that positive like-for-like net income has been delivered despite the more challenging comparatives of last year. Trading over the Christmas period was positive although we have seen a little softening in the volume of beer ordered during January," the company said in a statement.
The company said it currently expects proceeds of around GBP60 million for the full year from its pubs disposal programme, and said it is still guiding for capital investment of GBP70 million for the current year.
"However, given that the planned regulatory changes may increase the uncertainty of returns from investments made into longer-term agreements, we are diverting an increased proportion of capital investment into similarly attractive opportunities from shorter-term agreements," the company said.
In November last year, Enterprise Inns said the UK Parliament's vote to end the so-called beer tie between pub tenants and their landlords would have "serious unintended consequences" for the publicans and the broader industry.
"Whilst the planned legislation may require us to evolve our business model over the longer term, until the detail of the legislation is clear and enacted, we remain focused on providing exceptional local support to our publicans to aid their profitability which, in turn, will enhance our performance," said Chief Executive Simon Townsend in the company's statement Thursday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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