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News Article Comments : Enterprise are DEEP in the REIT
eddie robinson
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or something that rhymes anyway :)
Market Report: Enterprise Inns takes fresh hit from brokers
By Nikhil Kumar
Saturday, 30 August 2008
Another round of negative broker comment bore down on Enterprise Inns, the pubs group which took the FTSE 100 wooden spoon yesterday.
The stock, which was hit by negative comment from Cazenove earlier this week, closed down 3.57 per cent, or 11.25p, at 303.5p after Credit Suisse initiated coverage with an "underperform" rating and Landsbanki switched its stance to "reduce" from "hold". Both brokers expressed concerns about earnings in the light of a deteriorating consumer environment, with Credit Suisse spotlighting the issue of debt.
Evros Constantinou, an analyst at Credit Suisse, said: "A decline in group Ebitda [earnings before interest, tax, depreciation and amortisation] below £465m (9 per cent below our 2009 tenanted Ebita estimate) would result in the company breaching its bank debt covenants." He noted that such a decline looks "feasible on scenarios involving a combination of a considerable decline in beer sales and substantial tenant support".
25 Posts(s) found for this thread: Now displaying page 2 of 3
| Author Name | Opinion | Reply |
|---|---|---|
Liam Thomas 07/09/2008 16:23:43 |
Enterprise are DEEP in the REIT i sincerely hope enterprise go to the wall, but what then? what would the implications be for the lesees? does anyon know? This post replies to Stephen Corbett > Enterprise are DEEP in the REIT |
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martin kay 07/09/2008 17:46:31 |
Enterprise are DEEP in the REIT I suspect the answer is, "if" then you would have your same contract and obligations but with a new financial landlord. This post replies to Liam Thomas > Enterprise are DEEP in the REIT |
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edward carpenter 07/09/2008 19:40:20 |
Enterprise are DEEP in the REIT The content of this post is currently under review |
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Charles Yaxley 07/09/2008 19:32:16 |
Enterprise are DEEP in the REIT ....and it's a big "if". But more importantly, Martin, you make a very important point : I hope that those, prematurely or over optimistically in my view, who are wringing their hands realise that, in all liklihood, it would be a case of 'the same old same old'. What is truly needed is a complete upheaval in our industry, not just a narrow focus on 'the tie' and Pubcos. Conditions and circumstances are dreadful for ALL types of licensee and they're not too marvelous for brewers either. Pubcos and the Government have been dining too much on the proverbial Goose's "Golden Egg" whilst blaming all else for the ills (particularly binge drinking - I for one have never come across a pub that forced people to come in and to drink against their will).
The end will come, but do not expect divine justice. If we want to save our industry we must be pro-active in seeking change AND offering solutions. This post replies to martin kay > Enterprise are DEEP in the REIT |
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| Mark Dodds 07/09/2008 22:11:48 |
Enterprise are DEEP in the REIT Charles Yaxley I salute your opinion and your name. This post replies to Charles Yaxley > Enterprise are DEEP in the REIT |
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| Charles Yaxley 08/09/2008 01:44:34 |
Enterprise are DEEP in the REIT Mark, I'm touched: thank you. This post replies to Mark Dodds > Enterprise are DEEP in the REIT |
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| Inez Ward 08/09/2008 09:33:52 |
Enterprise are DEEP in the REIT Charles I don't think we disagree as much as you might think. I agree that the model is flawed, in that it is open to abuse. Your last sentence says it all, "if rents were truly fair and the tie was operated to provide a commission rather than a main stream income, the pubco's could add value to the industry" a pubco ran correctly! I agree entirely with your following post and unless the law is changed any companies that may follow the pubcos will also follow their business ethics, to be honest it is a hell of a money maker for the company! This post replies to Charles Yaxley > Enterprise are DEEP in the REIT |
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| Liam Thomas 08/09/2008 11:27:26 |
Enterprise are DEEP in the REIT And yet with this never ending stream of tied cashflow they still cant make the model work from thier end otherwise they would not be facing doom and gloom from the city.... This post replies to Inez Ward > Enterprise are DEEP in the REIT |
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| eddie robinson 10/09/2008 14:52:51 |
Enterprise are DEEP in the REIT The content of this post is currently under review |
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Nigel Wakefield 08/09/2008 15:52:43 |
Enterprise are DEEP in the REIT The problem is Inez, the whole scenario is short term, like any City Whizz Kid operation it is money now, grab what you can and we will cross the next bridge when we get to it. With this sort of policy people and small companies are sadly expendable. If any of the big companies fail the senior management will walk away with massive pensions and matching bank accounts, it's the way the City works. Old style brewers used to look after their staff and tenants, they had jobs and pubs for life, not until the money ran out or their services were not required any more. If any Pub Co bosses do read this I would be delighted to be proved wrong, I see too many people losing everything too often. This post replies to Inez Ward > Enterprise are DEEP in the REIT |
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