Enterprise reports 'improving trends' but income still down

In addition, the first five weeks of its final quarter has seen like-for-like net income growth.

Enterprise said: “In the first half of the year our income was adversely impacted by some exceptionally poor winter weather alongside the cessation of trading of Waverley, our wines and spirits distributor.

“In the third quarter we have faced tough comparatives against the prior year due to the timing of Easter and the positive impact from the Euro 2012 football championship and the Queen’s Diamond Jubilee celebrations.

“After taking account of these unusual events we estimate that our underlying like-for-like net income in the first half was down by around 2% and has improved in the second half to date to be down by approximately 1%.”

New services​

The firm said that key to sustaining its improved performance in like-for-like net income is the “successful execution of our many operational activities”.

“The rate of business failures continues to fall and we are making good progress with the roll out of new services to our publicans such as the deployment of free Wifi, the provision of improved food pricing and support and the availability of discounted Sky entertainment packages. We are also maintaining our investment in the estate including the completion of 656 exterior redecorations, many of which have been completed during June and July.”

The company said that its asset disposal programme remained on target and as at 3 August 2013 it had completed, exchanged or have in the hands of solicitors disposals of 356 pubs with proceeds of £127m. It expects total disposal proceeds for the full-year to be in the region of £150m.

On track​

The company said that asset disposals combined with cash generated from operations fund the investment in the core estate and continue to reduce bank debt.

It said: “We are pleased to report that our drawn bank borrowings net of cash are now at £217m, already below the level of the new bank facility of £220m which commences on expiration of the existing facilities on 15 December 2013. Our debt reduction strategy remains on track and we anticipate total net debt being reduced to £2.5bn by the year end.

“We are focused on delivering sustainable growth in like-for-like net income across the total estate, driven by constantly improving the quality of our pubs, attracting and retaining the best publicans and providing exceptional business building support.

“Trading performance continues to improve and, whilst we are unlikely to deliver like-for-like growth for the second half in total, like-for-like growth remains our target for the final quarter.”