Enterprise Inns net income up, share buyback announced

(ShareCast News) - Pub group Enterprise Inns rallied on Tuesday as it reported growth in like-for-like net income and announced a share buyback programme.In a trading update for the 25 weeks to 19 March, the company said LFL net income grew 1.5% in the leased and tenanted estate, which was ahead of analysts' expectations.Enterprise said that based on current trading and "the good progress" the group is making against its strategic objectives, the business should generate £25m of excess cash flow in the current financial year which it intends to use to fund a share buyback.Chief executive officer Simon Townsend said: "It is close to a year since we announced our new strategic plan for the business and we are making good progress. Our leased and tenanted business, Enterprise Publican Partnerships, continues to deliver like-for-like net income growth and the expansion of our managed operations and commercial property portfolio is on track."The announcement of a share buyback programme demonstrates our approach and underlines our confidence. We remain on track to meet our expectations for the full financial year and look forward to outlining the progress we have made in more detail later today."Numis, which rates the stock at 'buy', said £25m of share buybacks at 83p per share would be 5%-earnings accretive by its estimates.At 1340 GMT, Enterprise Inns shares were up 7.8% to 89.50p.