Enterprise Inns plc (ETI), the leading operator of leased and tenanted pubs in the UK, has published its Interim Management Statement for the 44 weeks to 2 August 2014, stating that trading during the period has been in line with expectations with total estate like-for-like net income for the 44 weeks to 2 August 2014 growing by 1.3%.
Growth in the third quarter was particularly encouraging with like-for-like net income up 2.1%, assisted by on-going operational initiatives and the FIFA World Cup in June. The first five weeks of the fourth quarter have produced trading in line with last year which is as expected given the more challenging comparative period, resulting in like-for-like net income growth of 1.5% for the first 18 weeks of the second half.
Cash flow and balance sheet
Cash flow and balance sheet metrics are in line with expectations, and Enterprise expects to meet their full year guidance of net proceeds from asset disposals of £70 million which will be used to fund the capital investment programme.
Strong cash generation from operating activities will continue to be used to reduce debts and they anticipate total net debt will be reduced to £2.4 billion by the year end.
Progress will be maintained
Simon Townsend, Chief Executive Officer, commented:
“We are pleased to report continued progress for the business with the delivery of our fourth consecutive quarter of like-for-like net income growth. The final quarter of the year will be measured against tougher comparatives but we are encouraged by the start we have made and remain comfortable with our full year expectations.
“We are focused on constantly improving the quality of our pubs, continuing to direct an increased proportion of capital investment toward initiatives which will grow income, while reducing the level of business failures and supporting our publicans to grow their businesses. Through these initiatives we believe that our progress will be maintained.”