The effects of the smoking ban, rising costs and the economic climate have predictably hit Enterprise Inns' profits in the six months to March 31 2008.
The UK's second largest pub operator today announced that pre-tax profits for the period fell 11 per cent to £132m on turnover down 3.3 per cent to £438m.
Earnings before interest, tax and depreciation (EBITDA) remained constant at £256m.
Investment across the group's pub estate was £37m for the period, around £5,000 per pub, up from £35m last year.
Basic earnings per share fell from 25.7p to 20.5p, reflecting a lower net exceptional credit of £6m, versus a £42m credit in 2007.
Enterprise announced an interim dividend per share of 5.8p, up 12 per cent.
Chief executive Ted Tuppen said that while the group was witnessing a tough trading environment and consumer leisure spending was likely to remain under pressure for some time "our licensees continue to tackle today's market with vigour and entrepreneurial flair, gaining market share and working with great purpose to make their businesses successful.
"We remain confident that by demonstrating our commitment to quality, co-operation and determination throughout the business, we will continue to deliver performance ahead of the market and solid growth in shareholder value."
The group said it was not currently progressing the previously announced £750m refinancing of the Unique securitisation "due to the volatile and uncertain conditions in the debt markets".
Enterprise also confirmed it was investigating the merits of converting to a real estate investment trust (REIT) following the tax authorities 'green light' last week, but it repeated that this process would take "several months".
The group's shares were up 0.75p this morning, trading at 488p.