Enterprise Inns plc, the leading specialist operator of leased and tenanted pubs in the UK, has announced its results for the year ended 30 September 2013, reporting ‘an improving trend’ in trading performance.
Highlights
- Improving trend in like-for-like net income with growth of 0.6% in the final quarter and a decline of 2.9% for the full year
- EBITDA before exceptional items £313 million (2012: £340 million) primarily reflecting impact of the disposal programme
- Focus on operational activities to support publican profitability with £62 million of capital investment across the estate during the year
- Strong operational cash generation combined with £150 million net proceeds from disposal programme has reduced net debt by £216 million to £2.5 billion (2012: £2.7 billion)
- Unsecured convertible bond issued, raising £97 million, reducing bank debt, net of cash, to £41 million (2012: £310 million)
- Like-for-like net income growth has been sustained in the first seven weeks of the current financial year
Statutory results
- Profit before tax and exceptional items £121 million (2012: £137 million)
- Adjusted earnings per share 19.0p (2012: 20.5p)
- Loss after tax of £4 million (2012: profit £44 million) arising after net exceptional charges of £99 million (2012: £58 million) principally relating to property matters
Commenting on the results, Ted Tuppen, Chief Executive said:
“We are pleased to report an improving trend in our trading performance which, together with our actions to improve the quality of the estate and reduce our net debt, puts us on a clear path to return to growth in the near term.
“This performance was particularly pleasing when set against the challenging economic conditions, the adverse weather at the beginning of the year, and the failure of our wines and spirits distributor. It is through the tireless efforts of our employees and the great work of our publicans that we have steered the business toward this growth trajectory and have delivered like-for-like net income growth of 0.6% in our final quarter.
“Our strong cash generation from operations combined with our successful disposal programme has reduced net debt by £216 million to £2.5 billion which, combined with our recent convertible bond offering, removes the reliance on disposal proceeds for debt reduction. This is a clear turning point and allows us to drive growth in the business from our operational initiatives and the reinvestment of future disposal proceeds to enhance the income potential of our estate.
“Like-for-like net income growth has continued into the first seven weeks of the current financial year. Looking ahead, we believe that the quality of our pub estate, the innovation and resilience of our publicans, the dedication of our team and the proactive actions we are taking provide the foundations for delivering sustainable net income growth.”
CEO Ted Tuppen to retire and Simon Townsend to take over
Ted Tuppen will be retiring as Chief Executive on 6th February 2014 and is expected to leave the Company on 19th May 2014. He will be succeeded by Simon Townsend, currently Chief Operating Officer.
Ted has been Chief Executive of the Company for more than twenty years, having founded the business in 1991 before its listing on the London Stock Exchange in 1995. Throughout the last two decades, ETI has led the industry in offering an attractive and affordable model for pub ownership in the UK, supporting thousands of publicans to set up and run their own pub business. ETI has grown into the largest operator of leased and tenanted pubs in the UK, with a portfolio that comprises some 5,500 properties valued at £4 billion.
Following a comprehensive review of internal and external candidates, the Board has agreed to appoint Simon Townsend as Chief Executive with effect from 6th February 2014. Simon joined the business in 1999, was appointed to the Board in 2000 and has been Chief Operating Officer of ETI for 7 years. He has worked in the pub and leisure industry for over 25 years across a number of operational, commercial, marketing and sales roles