Enterprise Inns toasts pre-tax profit rise
Solihull-headquartered pub giant Enterprise Inns has soared back into the black with pre-tax profit of £36m. The company last year posted pre-tax losses of £42m following exceptional costs of £163m.
In the year to 30 September 2014, the pub group posted profit before tax, pre-exceptional items, of £121m. But costs of £85m brought the figure down to £36m. Sales declined moderately from £639m to £632m.
"We are pleased to report like-for-like net income growth for the full year with each quarter delivering improvements on the prior year," said chief executive Simon Townsend.
"This represents significant progress and has been achieved through our continued focus on the implementation of actions that drive sales and profit for our publicans and as a result enhance our income."
In October, Enterprise Inns agreed the terms of a partial refinancing of its 2018 bonds and a new £138m banking facility. The deal is expected to lower interest costs and extend debt maturity.
Townsend added: "The successful partial refinancing of the 2018 corporate bonds and replacement of our bank facilities provides the business with increased flexibility and optionality with which we aim to sustain our operational progress, further reduce our debts and generate value for shareholders.
"While our performance this year has benefited from a UK economy which has shown some signs of strengthening, including improving employment prospects, we view the consumer recovery as fragile and remain cautious in the near-term.
Our focus for the current year is to continue to implement initiatives which assist publican profitability whilst increasing capital investment in relevant and innovative retail offers."
Enterprise Inns is the largest pub group in the country with an estate of more than 5,300 pubs across the UK.