Enterprise reports 'encouraging' trading; names new non-exec director

06-Feb-2014 - Last updated on 06-Feb-2014 at 13:17 GMT

Adam Fowle, currently chief executive at Tesco Family Dining, will become a non-executive following Enterprise’s AGM

Enterprise Inns has announced the appointment of former Mitchells & Butlers CEO Adam Fowle as a non-executive director, as it reports “encouraging” trading in the first 18 weeks of its financial year, with like-for-like net income across the whole estate for the year to date up 1% on the prior year.

The company said that trading is “in line with expectations” for the 18 weeks to 1 February.

In the period Enterprise completed or exchanged on 84 pubs for disposal, generating proceeds of £31m and a “healthy premium to book value”.

The firm said: “We continue to improve our estate and drive returns through capital investment with an expected investment of up to £65m for the full year. In the first 18 weeks of the financial year we have invested £25m in support of our letting programme and growth driving enhancements.”

Enterprise said its new £150m forward start facility, which commenced on 16 December, has been utilitised to repay the £60m corporate debenture which matured on 3 February 2014. “In line with our expectations, bank borrowings net of cash are now at £104 million, down from £301m a year ago.

“During the first quarter and in accordance with the amortisation schedule, we have repaid £11m of the Unique A3 securitised bonds and £6m of the A4 securitised bonds, which, together with £6m of bonds purchased and cancelled, leaves £1,277m securitised bonds outstanding as at 6 February 2014.”

Fowle appointment

Fowle, currently chief executive at Tesco Family Dining, will become a non-executive following today’s AGM.

Robert Walker, chairman, said: “We are delighted to welcome Adam to the Board. We set out with the specific target of appointing a new Non-Executive Director with customer service and strategic skills. In Adam we have secured that. He brings substantial industry and service sector knowledge and expertise which further strengthens the board.”

Fowle said: “Enterprise Inns is a great business. The last few years in the pub sector have been challenging but Enterprise has made real progress and I look forward to contributing to its further success.”

Simon Townsend replaces Ted Tuppen as chief executive following Enterprise’s AGM.