7th Feb 2019 08:58
LONDON (Alliance News) - Ei Group PLC on Thursday said its financial year was off to a good start after strong Christmas trading and its plans are on track.
For the 18 weeks to February 2, the pub owner and operator's leased and tenanted business posted 2% like-for-like growth with a "particularly strong" Christmas trading period and January trading in line with expectations.
"While cost pressures are evident across the broader market, our continued investment in our leased and tenanted business combined with our proactive publican support has ensured that income growth momentum has been maintained," Ei said.
The company's managed estate is now comprised of 398 pubs up from 355 on September 30, the end of its previous financial year. This is part of an effort by Ei to convert pubs from its leased and tenanted business to its managed estate.
This conversion is expected to continue, with Ei likely to have around 460 managed pubs by the end of September 2019.
In January, Ei - formerly known as Enterprise Inns - announced plans to sell 370 of its properties, including pubs and other commercial properties, for a total of GBP349 million. Completion of the first 348 disposals is expected to occur in March, it said.
In November 2018 the company began the return of GBP20 million to shareholders through its buyback programmes, and this has now completed with Ei having bought back 10.6 million shares at an average price of 188.87 pence each.
"The year has started well, with growth being maintained across our operating businesses and, despite the ongoing uncertainty regarding the consumer environment, we are on track to deliver our plans for the year. The proposed disposal of a substantial proportion of our commercial property portfolio is in line with our strategy of unlocking the embedded value from every asset within our business and monetising that value creation for the benefit of all stakeholders," said Ei Chief Executive Simon Townsend.
Shares in Ei Group were down 0.7% at 206.50 pence on Thursday.
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