28th Sep 2007 07:02
Enterprise Inns PLC28 September 2007 28th September 2007 Enterprise Inns plc Pre close trading update Enterprise Inns plc (ETI), which will be announcing its preliminary results forthe year ending 30th September 2007 on 20th November 2007, provides an update ontrading. ETI is pleased to announce that the business has continued to perform well andin line with the Board's expectations. The average EBITDA per pub has increasedby more than 6% over the past year due to ongoing improvements in the qualityand earnings potential of our pubs. This is a good result, particularly giventhe disappointing weather for part of the summer and the challenging comparablesfrom the 2006 World Cup. It is as yet difficult to evaluate the impact of the smoking bans introduced inEngland and Wales during the year. Anecdotally, and not surprisingly, qualitypubs that had prepared for the ban have performed well. We continue to work withour licensees to maximise the opportunities that the ban will bring but, at thesame time, we are aware that the real test of the smoking pub goer's resolvewill come with cold and wet winter weather. At the time of our interim results in May, we announced that we were exploringwith our advisors whether the existing Group, without the need for materialrestructuring of the business, could meet the qualifying criteria for admissionas a Real Estate Investment Trust (REIT). Discussions with HMRC are ongoing. We also announced that we were working on refinancing our existing balance sheetto raise in the region of £750 million of additional debt by the end of thecalendar year. This process is going well and the Board remains committed todetermining the structure it considers to be in the best long term interests ofshareholders. However, to avoid pricing new long term debt against thebackground of the current turbulence in the debt markets we believe that a delayinto 2008 is appropriate. In the meantime, we have sufficient funds to continuewith our share buy back programme. During the year to 27th September 2007, wehave purchased for cancellation 102.6 million shares at an average price of£6.40, leaving 501.6 million shares in issue, excluding shares held in theEmployee Benefit Trusts and in Treasury. ENDS Enquiries: Emma Baines, Investor Relations Manager 0121 256 3050 or 07990 550210 Ted Tuppen, Chief Executive 0121 256 3050 David George, Chief Financial Officer 0121 256 3040 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
EI Group