Pub company Enterprise Inns has reported a slight revenue increase from £625m last year to £632m for the year ended 30 September 2016, as it says it is on track with plans to transform the company.
However, profit before tax and exceptional items remained the same as 2015 at £122 million as interest savings from reduced debt offset reduction in EBITDA.
EBITDA before exceptional items was £292 million (2015: £296 million), in line with expectations and reflecting the impact of planned disposals.
Profit after tax stood at £71 million against a £65 million loss in 2015 which the company said was primarily due to lower exceptional refinancing costs and lower property charges arising from the annual estate valuation. This year’s estate valuation increased by 0.1%.
Strong cash generation also enabled the company to further reduce its net debt to £2.2 billion, down from £2.3 billion in 2015.
Enterprise's five-year strategy, announced in May 2015, intendeds to mitigate the impact of the new Pubs Code on the predominately leased and tenanted pub business. The company plans to build a managed estate of 750-850 pubs, and a commercial property business of around 900-1,000 sites by 2020.
Over the past year, the company has grown its 100% managed pub arm to 105 sites, with 30 trading under its Bermondsey operation and 75 under the Craft Union brand. The company also now has 11 pubs under its partnership with managed house operators.
Simon Townsend, chief executive officer said: 'Our plan to transform the Group to best serve our publicans and their communities whilst maximising returns from each of our assets remains on track.
'We are pleased to have delivered our financial objectives for the year, maintaining the growth momentum in our leased and tenanted business, while making significant progress in building our commercial property portfolio and managed operations and investments businesses.
'Whilst there is the potential for some economic uncertainty in the months ahead, trading in the first six weeks of the new financial year has been in line with our expectations and we are confident that the actions we are taking to execute our strategic plans are the most appropriate response to changes in the regulatory and economic environment.'