Enterprise 'on track' for 30 managed pubs by September
The number of managed houses trading under its Bermondsey and Craft Union operations has risen from 16 on 12 May 2015, to 22.
The pubco will open its first Managed Expert pub in September under the Eureka Inns banner with Rupert Clevely.
Enterprise has also reported this morning that its trading performance continues to be encouraging and in line with its expectations, with total leased and tenanted estate like-for-like net income for the 44 weeks to 1 August 2015 up by 0.6%.
The group said it was particularly pleased to deliver its eighth consecutive quarter of growth in the third quarter ended 27 June 2015 with like-for-like net income increasing by 0.5% despite the comparative period benefiting from the enhanced trading of the FIFA World Cup.
It said: “This performance has been achieved through a continued stabilisation of rental income and growing income from beer sales as favourable weather and improving consumer confidence have provided supportive retailing conditions for many of our publicans.”
Enterprise said that the execution of its strategic plan for the business, announced in May was on track.
It said: “Delivery of this plan will ensure we can best serve our publicans and communities whilst providing a clear path to maximising shareholder value through the optimisation of returns from every asset within our estate.”
The company said that its leased and tenanted business is performing well as “we enhance the provision of operational support and commercial benefits to our publicans to help them grow their businesses”.
It said that this support had contributed to the delivery of a further decline in the level of business failures, down 23% on the previous year, demonstrating “growing stability across the estate”.
During the period the company increased its portfolio from 185 properties, at 12 May 2015, to 206 properties and has increased the average annualised rental income from £53,000 to £55,000.
In line with its previous guidance, the company said it was on track to invest around £70m across its total estate with some 43% of investment directed towards income growth opportunities.
The company said that disposal plans also remain in line with its expectations to deliver £75m of proceeds for the full year.
It also said it had made good progress building a team with the “capabilities and experience required to deliver our strategic goals”. The company said it was actively recruiting people to fill a number of additional senior roles and was pleased already to have appointed Karen Baskett, operations director, Bermondsey Pub Company (formerly with Mitchells & Butlers), Miles Selby, procurement director (formerly with Wells & Young’s and J D Wetherspoon) and Simon Glucina, change programme director (formerly with LEK Consulting).
Simon Townsend, chief executive, said: “We are focused upon the successful execution of our strategic plans. The first priority is to ensure that our reinvigorated tied tenancy business continues to perform well. It is pleasing to have maintained our growth momentum with like-for-like net income growth achieved for our eighth consecutive quarter. Trading performance is on track to be in line with our expectations for the full financial year.
“We have made good progress increasing the number of managed pubs in the estate and growing our portfolio of commercial properties. We are continuing to invest in the estate and to support our publicans. We expect to make further progress on the delivery of our strategic initiatives in the coming months and will be providing a further update when we present our preliminary results in November.”
