17th May 2016 07:26
LONDON (Alliance News) - Enterprise Inns PLC on Tuesday reported growth in profit in the first half of its financial year as the level of exceptional charges decreased and revenue grew, and it said it is confident on the full year.
The pub chain said its pretax profit in the six months ended March 31 grew to GBP40 million from GBP10 million in the first half of the prior year, while revenue rose to GBP305 million from GBP302 million.
Enterprise Inns said like-for-like net income in the leased and tenanted division Enterprise Publican Partnerships grew by 1.8% in the half, compared with 0.6% growth in the comparative period, benefiting from Easter being a week earlier this year.
Like-for-like net income in the commercial property portfolio Enterprise Commercial Properties increased by 5.2%, compared with 5% growth in the comparative period.
Profit was also helped as exceptional charges declined to GBP17 million from GBP47 million.
Enterprise Inns did warn that the first week of the second half was hurt by Easter falling into the first half this year, but said trading since then has been in line with expectations. The company expects to benefit from the Euro 2016 football championship in June and July and said it remains confident of delivering positive like-for-like net income growth in the leased, tenanted and commercial estates for the full year.
"We are continuing to make good progress. Our leased and tenanted business is maintaining its growth momentum while the rapid expansion of our managed operations and commercial property portfolio is on track and delivering results in line with our expectations," Chief Executive Simon Townsend said in a statement.
"We are confident that the execution of our strategy is demonstrating a clear path to maximising long-term shareholder value and our returns driven approach to allocating excess cash will deliver near-term benefits to all our stakeholders," he added.
Shares in Enterprise Inns were trading up 3.3% at 92.75 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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