Enterprise Inns: 4% drop in net income per pub

Enterprise Inns has reported a 4% decline in average net income per pub for the 16 weeks to 16 January 2010, compared with an 8% fall the previous year.

In an interim management statement, the company said that the figures across the whole estate had been helped by the disposal of under-performing pubs.

Net income per pub in 82% of outlets let on substantive agreements had dropped by less than 2% as trading in better quality sites continued to stabilise.

The group said that trading during the period had been variable, with a generally strong Christmas bringing an uplift in sales, while extreme weather during the first two weeks of January disadvantaged some pubs.

Enterprise completed the sale of 103 pubs for £32m during the quarter and has exchanged contracts on 34 sites for £15m, with the disposal of a further 95 outlets that are currently in the hands of solicitors expected to generate £32m.

Following the sale and leaseback of 20 pubs for £39m, the company said that it had identified a further 24 properties to be sold at auction on similar terms during the current quarter.

Challenging​

The company reported several improving trends across its estate, including a reduction in the number of outlets under temporary management agreements, an expected fall in the cost of financial assistance required as licensees managed to stabilise their businesses and strong demand from good quality licensees seeking a pub.

In a statement, Enterprise said: "Trading conditions will be challenging throughout the year as pubs and consumers alike face the prospect of rising taxes and higher unemployment.

"However, as we continue to improve the quality of our estate both through investment and the disposal of unsustainable pubs, we remain confident in our strategy and believe that we are well positioned to drive the business forward through these difficult times."