31st Mar 2010 07:00
Enterprise Inns plc
31st March 2010
Enterprise Inns plc (ETI), which will be announcing its Interim Results for the half year ending 31st March 2010 on 11th May 2010, provides an update on trading.
There has been no material change in the performance of the ETI business since publication of the Interim Management Statement on 21st January 2010 (www.enterpriseinns.com/IMS/21.pdf). The proportion of the estate let on substantive agreements has increased and trading in these pubs remains relatively stable. We have made excellent progress disposing of underperforming pubs which do not fit the future profile of the ETI business.
We continue to offer financial support to licensees who find themselves in difficulty and are encouraged that, whilst the total cost of this support, business failures and temporary management agreements remains above the corresponding level last year, these costs are reducing.
Strong cash generation from the business and the proceeds from asset disposals have continued to reduce the level of our borrowings. Based upon discussions with our banking group and input from our advisers, the Board remains confident that adequate banking facilities will be available at the time of our refinancing, which we expect to be concluded before the end of the financial year.
These are times of unprecedented challenge for the pub industry and we note the proposals made by the recently appointed Minister for Pubs and his commitment to help the pub industry with funding of £4.3m over the next three years. However, this compares poorly with the £20m we spent supporting deserving licensees last year alone and pales into insignificance when set alongside the extra £160m beer duty burden imposed by the Chancellor in his latest Budget.
The Board has reviewed ETI's reporting calendar and decided to update the market four times a year, with Interim Results in May, Preliminary Results in November and Interim Management Statements in July and January. Accordingly, ETI does not expect to release pre-close statements in future.
Enquiries:
Tulchan Communications, Andrew Honnor/Mal Patel 0207 353 4200
Ted Tuppen, Chief Executive 0121 733 7700
David George, Chief Financial Officer 0121 733 7700
Emma Baines, Investor Relations Manager 07990 550210
Related Shares:
EI Group