Enterprise Inns pins hopes on Olympics
Enterprise Inns reported slightly weaker than expected profits but said celebrations centering on the Olympics and the Queen’s Diamond Jubilee this year would help offset tough trading conditions and keep the pub group on track for the full year.
The company, which has over 6,000 pubs across Britain, also said it had cut bank borrowings net of cash to £397m from £446m at the end of September, alleviating fears it might fall into a “cash trap” scenario.
Its net debt now stands at £2.9bn, versus £3.1bn a year ago, helped by 89 million pounds raised from the disposal of pubs.
“We have commenced discussions with our bank group to extend our bank facilities with a new forward start facility that would commence on expiration of the existing facilities on 15 December 2013,” the company said in Tuesday’s results statement.
First half profit before tax and exceptional items came in at £64m, just short of market expectations that ranged between 65 and £69M, according to a Thomson Reuters poll of four analysts.
The figure was down from an underlying figure of £74m a year ago but up from an unadjusted £61m.
Like-for-like net income was down 1.6 per cent although the rate of decline eased from 5.0 percent a year earlier and there was a rise at what Enterprise calls its “substantive” core estate which accounts for 94 percent of total pub income.
The second half of the year has started well, the company said in a statement, adding that it expected national summer events like the Queen’s Jubilee, Olympic games.