Enterprise Inns plc, the largest pub owner in the UK, has announced its results for the year ended 30 September 2015.
Financial highlights
- Like-for-like net income growth of 1.0% in the final quarter resulting in an increase of 0.8% for the full year
- EBITDA before exceptional items of £296 million (2014: £302 million), in line with expectations following the impact of planned asset disposals
- Profit before tax and exceptional items increased to £122 million (2014: £121 million)
- Adjusted earnings per share (excluding exceptional items) up 2.1% at 19.4p (2014: 19.0p)
- Strong cash generation enables further net debt reduction, down to £2.3 billion (2014: £2.4 billion)
Statutory results
- Statutory loss after tax of £65 million (2014: £30 million profit) after net exceptional charges of £162 million (2014: £65 million) which primarily relates to the impact of the total estate revaluation, which is down 2.7% (2014: down 1.9%).
Operational & strategic highlights
- The execution of the strategic plan for the business is on track. Delivery of this plan will ensure Enterprise can best serve its publicans and communities whilst providing a clear path to maximising shareholder value through the optimisation of returns from every asset within the estate.
- Reinvigorated tied tenanted business
- Operational enhancements aimed at improving publican profitability have helped deliver a further 18% reduction in the number of business failures
- Expanded managed business
- Total number of managed house pubs trading under the Bermondsey and Craft Union operations increased from 16, at the time of the strategy announcement on 12 May 2015, to 35 at 30 September 2015.
- the first managed expert pub successfully opened on 8 October 2015 in Forest Hill, London
- Quality commercial property portfolio
- increased portfolio of commercial properties from 185 sites, at 12 May 2015, to 213 sites and have increased the average annualised rental income from £53,000 to £56,000.
- Capital investment and disposals
- Capital investment of £69 million (2014: £66 million) of which 44% was focused on growth driving initiatives yielding expected returns on investment in excess of 15% hurdle rate
- Net proceeds from disposal of primarily under-performing assets of £75 million (2014: £73 million) used to fund investment programme