A quarter of Enterprise Inns pubs finding 2008 tougher

Nearly 2,000 Enterprise Inns pubs are finding trading more difficult than this time last year, as the smoking ban and tough economic climate continue to make their mark on the on-trade.

Speaking as his company announced its first half results, Enterprise Inns' chief executive Ted Tuppen said three quarters of the group's pubs had been trading in line or ahead of this time last year, suggesting that more than 1,900 pubs were finding life tougher than the same period in 2007.

Tuppen conceded there were "a few" more people who were not making an adequate return than previously had been the case and were deciding to quit the industry, but he said that the number was "still relatively low".

Spending on lessee support was £3m up on the same period last year, he added.

"We've always been supportive of our pubs with things like rent reviews. We want to help our pubs trade out of trouble or alternatively trade out of the pub with dignity."

Asked about average pub profitability across the group's estate, Tuppen said it was "difficult to tell".

However he noted that 75 per cent of the group's pubs were performing better - or at least no worse - than the same time last year.

"It's a great credit to the quality of our lessees and their resilience that they can trade in such a way at such a time," Tuppen said.

On current trading Tuppen said: "Short term comments add no value. Comparing this April with April last year is like comparing apples with oranges."

On the REIT question, Tuppen said "a lot of resources have gone into gaining permission from the tax authorities to convert into a trust and now a lot of resources are going into investigating whether we will make the move to become one".

His comments came as Enterprise reported first half profits down11 per cent to £132m, on turnover down just over three per cent at £438m.