UK pub operator Enterprise Inns (LON:ETI) has managed to complete a £625m refinancing of its bank debt in time for today’s interim results, which it described as “solid” given the challenging economic conditions the sector still faces.

In the six months to March 31, 2010, Enterprise posted a pre-exceptional ebitda figure of £206m, down from £226m in the same period last year. Profit before tax and exceptional items came in at £86m from £104m last time, while the statutory pre-tax profit figure was £91m, up from £9m. Enterprise maintained its strategy of selling underperforming pubs during the first half, which raised gross proceeds of £135m and an exceptional profit of £32m. The group’s underlying net debt was slashed by £163m and with its new debt deal the company has agreed an amortising facility that starts in May 2011, with final maturity in December 2013.

Ted Tuppen, Enterprise’s chief executive said: “In the face of very challenging trading conditions across the pub sector, these are solid results which reflect the quality of our pub estate, the resilience of the leased and tenanted pub model and, above all, the skills and determination of our retail partners and the Enterprise team.”

Mr Tuppen added that the group had a robust balance sheet, a secure, flexible and tax efficient debt structure and was continuing to generate strong operating cash flows, enhanced by a successful programme for disposing of underperforming and non-core pubs. He noted that trading conditions were expected to remain challenging during the second half of the year and said he hoped that the new Government would take steps to recognise and support community pubs and their “vital role” in British society.

In a trading update in March, Enterprise acknowledged a set of 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. However, it said that the cash commitment compared poorly with the £20m the group 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.

Enterprise’s pub estate now comprises 7,138 pubs, valued at £5.3bn – an average of £740,000 per pub. The group owns the freehold of 97% by number and 99% by value of the pub estate and…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here