Enterprise profits down 11%
Enterprise Inns has recorded an 11% slump in profit before tax to £132m for the six months to 31 March compared to last year.
Britain's second biggest pubco, with 7,785 pubs, said the smoking ban, low consumer confidence and the increased competition for the leisure pound had taken its toll.
EBITDA (earnings before interest tax depreciation and amoritisation) matched the 2007 level of £256m.
The pubco invested £37m in the estate and acquired 40 pubs at a cost of £32m while disposing of 18 "underperforming pubs" and surplus land for £12m.
Enterprise announced last week that it had been given the go-ahead to convert to the tax efficient Real Investment Trust Status (Reit) and further analysis will continue before it decides whether it should recommend conversion to shareholders.
"These are solid results, reflecting the foundations of quality that the team has built over past years and the resilience of the leased and tenanted operating model," said Enterprise chief executive Ted Tuppen (pictured).
"The trading environment is tough and consumer leisure spend is likely to remain under pressure for some time.
"Despite this, 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."
Entrepreneurial flair
Chairman Hubert Reid added: "In a period of difficult trading conditions, including the impact of the smoking ban, low consumer confidence and increasing pressures on disposable income, this solid performance reflects the quality of our pub estate and the resilience of our licensees.
"As we approach the first anniversary of the smoking ban in pubs, the trading environment remains tough, with many costs rising and consumer leisure spending likely to remain under pressure for some time.
"Despite this, 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."
