Enterprise Inns to expand 'Project Beacon'

Enterprise Inns is to expand its Project Beacon ‘managed tenancy’ and will look to develop other concepts and franchise-style agreements.

The company, revealed it would expand its Project Beacon ‘managed tenancy’ agreement from 90 to 300 sites over the coming year.

The firm said: “Project Beacon involves a much higher level of proactive engagement between the ETI team and the publican, covering areas such as product selection, pricing, retail standards, management information and marketing and has helped to develop our thinking beyond the traditional leased and tenanted proposition.”

The firm added: “In addition to the roll out of further Beacon concepts, we are now in a position to consider franchise-style agreements and to develop other concepts where our focus would be on the many opportunities to further develop the food offering across our pub estate.”

The news came as Enterprise Inns reported a 10.3% fall in pre-tax profit in the year to 30 September 2011. The company, which ran 6,289 sites at the year end, said its highlights included average net income per pub increasing from £64.2k to £65.6k, while 90% if its estate was let on substantive agreements, up from 89% on 2010. Average net income per pub increased 2% in H2, with no change in H1.

Enterprise disposed of 466 non-core pubs during the year, generating net proceeds of £106m, while the sale and leaseback programme generated £132m from 105 pubs, at an average rental yield of 6.6%. Total disposal proceeds from the coming year may exceed £150m, Enterprise said.

Profit before tax and exceptional items for the company was £157m (2010: £175m), with profit after tax down £2m to £24m and operating profit at £352m (2010: £387m). Revenues fell 6.2% to £711m.

Enterprise Inns also announced today that its chairman Hubert Reid is to retire, with a successor to be appointed at its AGM on 9 February 2012.