Enterprise Inns has announced it has achieved a second successive year of like-for-like growth in net income across its leased, tenanted and free-of-tie estate, despite major turbulence in the pub market.
Announcing its trading results to 30 September 2015, it confirmed a like-for-like net income growth of 1.0% in the final quarter resulting in an increase of 0.8% for the full year. EBITDA before exceptional items sits at £296m following planned asset disposals. Profit before tax and exceptional items increased by £1m on last year, to £122m.
However the company – the largest pub owner in the UK – also reported a statutory loss after tax of £65m compared to £30m in 2014. This was due to net exceptional charges of £162m which Enterprise says 'relates to the impact of the total estate revaluation, which is down 2.7%'.
Enterprise announced a new ‘strategic plan’ in May this year, following confirmation the controversial Pubs Code would be introduced. It includes plans to sell 1,000 pubs and create a substantial managed division.
CEO Simon Townsend said: 'This [growth] has been achieved by maintaining a relentless focus on the many operational activities and initiatives with which we are supporting our publicans to improve their profitability.
'While the market in which our pubs operate remains highly competitive, and as we prepare for the implementation of new legislation in 2016, we are encouraged by the continuing momentum of our business, reflecting the exceptional efforts of our publicans and the strength of our relationships with them.
'The implementation of our strategic plan is on track, providing us with greater flexibility with which to optimise returns from each of our assets and deliver greater value to our shareholders.
'Our managed house estate is being successfully expanded and our commercial property portfolio continues to grow in both scale and quality in line with our plans.'
Enterprise says operational enhancements aimed at improving publican profitability have helped deliver a further 18% reduction in the number of business failures. The total number of managed house pubs trading under its Bermondsey and Craft Union banner has also increased from 16 in May, to 35 on 30 September 2015.