Enterprise Inns refinances as income per pub decline slows

Enterprise Inns claims to have stemmed the decline in net income per pub, as it unveiled a £625m refinancing package this morning.

The company said that average net income per pub was £31,200 for the six months ended 31 March 2010, down from £32,200 over the same period in 2009. Despite the 3% decline, Enterprise said it marked an "improving trend" compared to last year's 8% decline. 

Regional variations were also "significant", with average net income per pub down by 5% in the North, 3% in the Midlands and 1% in the South.

Enterprise generated £86m from the sale of 261 pubs in the period, which helped it to make a £91m pre-tax profit for the period, compared to £9m in 2009. It now plans to auction a further 30 pubs under its sale and leaseback programme during the second half of the year.

And it managed to reduce its debt pile by £163m to net debt of £3.4b, compared to almost £3.6b at the beginning of its financial year.

The company now has a total of 7,138 pubs, valued at £5.3bn - an average of £740,000 per pub. 

Commenting on the results, chief executive Ted Tuppen 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."

"We expect trading conditions to remain challenging during the second half of the year and we sincerely hope that the new Government will take steps to recognise and support community pubs and their vital role in British society," he added.

The company also released more details of its new lease agreements, announced in a trading statement earlier this year. It indicated that it would offer leases of 10 to 20 years, linked to the Retail Prices Index (RPI) of inflation, with no rent reviews.

All new agreements from July 2010 will offer a free-of-tie guest ale option for locally-sourced cask ales supplied by brewer members of the Society of Independent Brewers (SIBA) located within a 20-mile radius of the pub.

Enterprise Inns seeks £12.6m from auction of eight London pubs >> 

Enterprise in possible £1b refinancing deal >>

Enterprise Inns sees fall in net income >>

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