6th Feb 2014 10:44
LONDON (Alliance News) - UK pubs operator Enterprise Inns PLC Thursday said trading has been encouraging in the first 18 weeks of the year, as like-for-like net income continued to improve, having returned to growth at the end of its previous financial year.
The group said growth momentum continued, with like-for-like net income across the whole estate for the year to date up 1% on the prior year.
The company has been busy restructuring the business for the last few years, selling off unsustainable pubs to help bring down its debt burden, and reinvesting the disposal proceeds in the rest of the business.
Enterprise Inns said it has made good progress in the first 18 weeks of the financial year, having completed or exchanged on 84 pubs for proceeds of GBP31 million, generating a "healthy" premium to book value, it said.
"Our disposal programme is focused on pubs with limited trading potential, and we expect such disposals to generate GBP70 million of proceeds in the current financial year," the company said in its latest trading update.
The group said it has invested GBP25 million so far this year in support of its letting programme and growth driving enhancements, and expects to spend up to GBP65 million on investment for the full year.
"In line with our expectations, bank borrowings net of cash are now at GBP104 million, down from GBP301 million a year ago," said the company.
As previously announced, Enterprise Inns' Chief Executive Officer Ted Tuppen is being succeeded by Simon Townsend, currently the group's Chief Operating Officer, at the company's annual general meeting Thursday.
Shares in the pub operator were trading 3.3% lower at 157.90 pence per share Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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