12th May 2015 07:11
LONDON (Alliance News) - Enterprise Inns PLC Tuesday reported a huge drop in profit in the first half of its financial year, which it blamed on costs associated with debt refinancing and property charges, but said it will optimise returns from its assets under its strategic review of its property portfolio.
The pub operator reported a pretax profit of GBP10 million in the six months to March 31, down from GBP47 million in the same period a year earlier. It booked GBP47 million in charges, compared with GBP8 million in charges the year before, which it said was largely due to a GBP26 million cost in respect of debt refinancing and property charges of GBP21 million.
Revenue also declined slightly to GBP302 million from GBP308 million, as Enterprise said its like-for-like net income growth was up 0.6%, down from a 1.1% rise the year before.
Enterprise added that as part of its strategic review to optimise the returns from every asset within its property portfolio, it will increase its operational flexibility by expanding its managed business and building a high-quality commercial property portfolio.
Enterprise plans to operate 750 to 850 managed pubs by September 2020, and expects to have a commercial property business with around 900 to 1,000 property assets.
"This new strategic direction will ensure that we generate the greatest value from each of our assets, and will also accommodate the requirements of the new legislation. This is a sustainable strategy for our business which embraces different operating models to best serve our publicans and their communities whilst delivering greater value to our shareholders," Chief Executive Simon Townsend said in a statement.
Enterprise Inns shares were up 2.0% to 135.00 pence at the open Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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