Enterprise: pub help fund not enough
Enterprise Inns has hit out at the level of cash offered to help the trade by the pubs minister John Healey.
Healey announced that £4.3m would be made available to help pub projects via Pub is the Hub and co-operative buyouts but Enterprise said more was needed.
"These are times of unprecedented challenge for the pub industry and we note the proposals made by the recently appointed minister for pubs and his commitment to help the pub industry with funding of £4.3m over the next three years," said chief executive Ted Tuppen.
"However, this compares poorly with the £20m we spent supporting deserving licensees last year alone and pales into insignificance when set alongside the extra £160m beer duty burden imposed by the Chancellor in his latest Budget."
But Enterprise did not comment on Healey's proposals to force pubcos to offer a free of tie option and a guest beer right for tied tenants by June 2011 (Pubcos face new Beer Orders).
No material change
In a trading update, Enterprise said there had been "no material change" in its performance since it updated in January (Enterprise Inns: 4% drop in net income per pub), when it reported a 4% decline in average net income per pub, compared to an 8% drop the year before.
"The proportion of the estate let on substantive agreements has increased and trading in these pubs remains relatively stable," said Tuppen. "We have made excellent progress disposing of under-performing pubs which do not fit the future profile of the ETI business."
He added: "We continue to offer financial support to licensees who find themselves in difficulty and are encouraged that, whilst the total cost of this support, business failures and temporary management agreements remains above the corresponding level last year, these costs are reducing."
Enterprise said it "remains confident" that adequate banking facilities will be available at the time of its refinancing, which is expected to be concluded by the end of the year.
It also announced it would only now update the market four times a year, rather than six.
