26th Sep 2006 07:01
Enterprise Inns PLC26 September 2006 26 September 2006 ENTERPRISE INNS plc PRE-CLOSE PERIOD TRADING UPDATE Enterprise Inns plc (ETI), which will be announcing its preliminary results forthe year ending 30th September 2006 on 21st November 2006, provides an update ontrading. ETI is pleased to announce that the business has continued to perform well andthe Board expects that both profit before tax and earnings per share will be inline with its expectations. With continued focus on improving the quality andearnings potential of our pubs, we are pleased that weighted average EBITDA perpub has increased by more than 5% over the past year. This has been achieveddespite subdued increases in rental levels as we seek to help licensees managesubstantial increases in overheads, especially utilities and business rates. As expected, licensing reform has had a minimal impact on trade but has clearlyshown benefits in terms of a reduction in alcohol related disorder, whereflexible trading hours have helped to foster a more relaxed atmosphere,particularly around pub closing times. Furthermore, the pub trade has workedhard, with significant success, to reduce the irresponsible pricing andpromotions which were seen to encourage excessive consumption. We are pleasedthat the Government is at last taking more seriously the pricing of alcohol insupermarkets, where cheap beer, sometimes sold below cost price, is regularlyused as a marketing tactic to attract additional customers, with the unfortunateside effect of providing very low cost alcohol for consumption in a completelyuncontrolled environment. In particular, we support the efforts of the brewerswho are seeking to work with the supermarkets to encourage more responsiblepricing in this important market place. With just 138 pubs in Scotland, we have relatively little exposure to the impactof the smoking ban, introduced in March this year. Unsurprisingly, we have notedthat there is a greater impact on consumption in drinks orientated pubs, whichin turn has an adverse impact on gaming machine income. Above all, it is clearthat any negative effects are minimised where licensees prepare for the ban.With this in mind, we are working closely with our licensees across England andWales and are confident that our estate will be well placed to minimise therisks and maximise the opportunities that the forthcoming ban will bring. Following our recent refinancing, together with the sale of 769 pubs to AdmiralTaverns for £318 million, we have increased our share buy back programme. As at25th September 2006, we had purchased into Treasury or for cancellation 41million shares at an average price of £9.26 leaving 301 million shares in issue,excluding shares held in the Employee Benefit Trust. Enquiries: Emma Baines Assistant to the Chief Executive 0121 256 3050/07990 550210Ted Tuppen Chief Executive 0121 256 3050David George Finance Director 0121 256 3040 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
EI Group