Enterprise Inns is currently offering special concessions to 850 licensees as it seeks to help them through the tough trading period.
Britain's second biggest pubco said that it had shelled out £5.5m on rent concessions and special discounts in the second half of the year. There has also been a drop in the number of pubs let on long term leases from 85% of the estate to 83%.
"Trading conditions have, as expected, remained difficult during the second half of the year, with on-trade beer volumes reflecting the adverse impact of the smoking ban, a poor summer and, above all, continuing weakness in consumer spending," it said in a statement.
However, Enterprise said that food sales continued to grow at its pubs and estimated that 40% of its pubs had actually grown beer sales on a like-for-like basis on last year.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amoritisation) is expected to be down 5% on a like-for-like basis for the second half to 30 September and down 3% for the full year, driven by lower beer sales and the cost of licensee support.
During the year, Enterprise has acquired 58 pubs for £49m and invested £70m in improvements to the estate. It also sold 58 pubs and a number of plots of land for £29m. A further 30 pubs are in the process of being sold for around £18m.
The pubco now plans to curtail its acquisition programme and return the investment level in the estate to around £45m.
Real Estate Investment Trust
Enterprise has decided not to pursue conversion to tax efficient Real Estate Investment Trust (Reit) at this stage despite getting the go-ahead from HM Revenue & Customs.
"In light of the current turmoil in the financial markets, the board does not however consider it appropriate to seek the consent of bondholders at this time," it said. "We are therefore adopting a cautious approach to the costs and processes of conversion, continuing to work with our advisers to explore the options and to develop a solution which is demonstrably in the best long term interests of all stakeholders.
"We are not working to a particular timetable and will make further announcements as and when appropriate."