Demand pushes Enterprise Inns to third straight growth quarter
PUB GROUP Enterprise Inns said improving trade boosted by strong demand in the south of England and a support programme for its publicans left it confident of achieving full-year underlying net income growth.
The group, landlord to some 5,500 pubs, has been investing in revamps to its estate, as well as better training for publicans, discounted TV packages and improved food ranges to help boost sales after years spent focused on selling off pubs to help lower huge debts.
The firm yesterday reported like-for-like net income growth of 1.1 per cent for the six months to 31 March, making it three straight quarters of growth for the first time since 2008.
Adjusted pre-tax profit was flat at £55m, in line with expectations.
Shares in Enterprise Inns rose 3.4 per cent in early trading, closing up one per cent at 146.5p.
Since the credit crisis, the group has been forced to sell off a raft of pubs to help reduce net debt, which now stands at £2.5bn, having sold off 129 pubs in the half.
“I am confident that through our activities to support publicans to grow their businesses we will achieve our target of like-for-like net income growth for the full financial year,” said boss Simon Townsend.