Les22 Nov 2011 10:39
Enterprise Inns plc
Preliminary announcement for the financial year ended 30 September 2011
22 November 2011
Enterprise Inns plc (ETI), the leading specialist operator of leased and tenanted pubs in the UK, today announces its results for the year ended 30 September 2011.
Highlights
Ø EBITDA* before exceptional items £366m (2010: £405m)
Ø Average net income per pub up by 1% to £64.2k for full year (2010: £63.6k)
Ø 90% of estate let on substantive agreements (2010: 89%)
Ø Like-for-like net income in substantive estate down 1.7% (2010: 2.3% down)
Ø Annual revaluation of pub estate reduces book value by £173m: 4% (2010: £103m: 2%)
Ø £238m proceeds from disposals and our sale and leaseback programme
Ø Strong cash generation has reduced net debt by £302m to £3,003m
Statutory results
Ø Profit before tax and exceptional items £157m (2010: £175m)
Ø Profit after tax £24m (2010: £26m)
Ø Adjusted earnings per share# 23.4p (2010: 25.9p)
* Earnings before interest, tax, depreciation and amortisation
# Excludes exceptional items
Commenting on the results, Ted Tuppen, Chief Executive said:
"At the start of the year we set ourselves the task of stabilising the operational performance of the business whilst continuing to reduce our exposure to the banking market. We have made good progress on both fronts. The performance of our substantive estate, which makes up 90% of our estate by number, 95% by income, has continued to improve and we have reduced net debt by £302 million.
Strong cash flows from disposals and operating activities have helped to significantly reduce bank borrowings during the year and we will continue to reduce our exposure to the volatility of the banking market by bringing forward a review of our existing banking facilities to secure appropriate bank funding for the future. In addition, we are reviewing how we can ensure that the income potential from every outlet is maximised including identification of additional opportunities to realise proceeds in excess of book value through disposal or alternative use, where appropriate.
Whilst trading conditions are likely to remain challenging, we expect that the quality of our pub estate and the resilience of our publicans will ensure that the like-for-like performance in the substantive estate continues to improve. As we return the business towards growth, we remain committed to our initiatives and our strategy and confident that in the medium term we will be in a good position to deliver positive returns to shareholders."
Enquiries: Tulchan Communications, Andrew Grant/David Allchurch 0207 353 4200