Enterprise Inns plc (ETI) has published its Interim Management Statement for the 18 weeks to 1 February 2014, reporting encouraging trading, in line with expectations, and with like-for-like net income across the whole estate for the year to date up 1.0% on the prior year, continuing the growth momentum achieved in the final quarter of the prior financial year.
Estate enhancement
The quality of the estate is being improved through the disposal of unsustainable pubs and reinvesting the disposal proceeds in the retained business. The disposal programme is focused on pubs with limited trading potential and it is expected that such disposals will generate £70 million of proceeds in the current financial year. In the first 18 weeks of the financial year good progress has been made in completing or exchanging on 84 pubs for proceeds of £31 million, generating a healthy premium to book value.
The estate continues to be improved, with returns driven through capital investment with an expected investment of up to £65 million for the full year. In the first 18 weeks of the financial year, £25 million has been invested in support of the letting programme and growth driving enhancements.
Financing
The new £150 million Forward Start Facility commenced on 16 December 2013 and is available through to June 2016. These facilities have been utilised to repay the £60 million corporate debenture which matured on 3 February 2014. In line with expectations, bank borrowings net of cash are now at £104 million, down from £301 million a year ago.
During the first quarter and in accordance with the amortisation schedule, £11 million of the Unique A3 securitised bonds and £6 million of the A4 securitised bonds has been repaid, which, together with £6 million of bonds purchased and cancelled, leaves £1,277 million securitised bonds outstanding as at 6 February 2014.
Adam Fowle joins the Board
Adam Fowle will be appointed to the Board immediately following the Annual General Meeting as a new non-executive director.
Adam has over 20 years licensed retail experience. He is currently Chief Executive of Tesco Family Dining and was previously Chairman of Bramwell Pub Company. Before that, he was CEO of Mitchells and Butlers, and Retail Director of Sainsbury’s Supermarkets Ltd.
As previously announced Ted Tuppen will retire as Chief Executive immediately following the Annual General Meeting. He is succeeded by Simon Townsend, currently Chief Operating Officer.