- Morning Advertiser >
- Forums >
- News Article Comments >
- Enterprise: £1.3m a month on tenant support
News Article Comments : Enterprise: £1.3m a month on tenant support
Enterprise Inns is currently spending £1.3m a month on tenant support as the average level of licensee profitability fell by 4% to £45,000 in the year to 30 September.
Britain’s second biggest pubco reported a 12.6% drop in profit before tax to £263m and a 3% drop in earnings before tax interest, depreciation and interest (EBITDA) to £512m in what chief executive Ted Tuppen described as a “tough year”.
Enterprise spent a total of £9m helping 1,453 of its tenants through rent concessions and special discount schemes in the year to 30 September.
As of 30 September, 855 licensees were receiving support with rent concessions for the year amounting to £2.7m and special discounts £6.4m. The combined cost was running at £1.3m a month at the end of September. Profitability had dropped as a consequence of the smoking ban and cheap off-trade alcohol, it said.
“Whilst the majority of licensees comply with the terms of their agreements and work closely with the Enterprise team to develop trade
16 Posts(s) found for this thread: Now displaying page 1 of 2
|
||
| Author Name | Opinion | Reply |
|---|---|---|
D.Smith 18/11/2008 08:15:35 |
RE: Enterprise: £1.3m a month on tenant support In an age when many businesses, particularly in the licensed trade are struggling big time you have kicked the trend! With tenant support you have assisted them to just a 4% fall in profit. Rents have been upped on review by 2.2% and your estate has been revalued with an uplift of 1%. No wonder you still have at least 130 applicants a month for your vacant pubs! Give us an insight please, and pass on your secret's because non of this seems to apply to our business, estate or profits forcast. I just cannot understand why the city do not agree either... edited by: Admin at: 19/11/2008 08:38:10 This post replies to this thread |
|
Graham Barr 18/11/2008 09:12:40 |
Enterprise: £1.3m a month on tenant support You have to laugh don’t you. Tenants see profit fall just 4% to £45K ??? ha ha ha! The entire drinks industry is telling us UK beer volumes are falling 8 – 10%, rents are typically rising with RPI by 4.5% and beer/food/energy/sky/rates are all soaring upwards. Are we also expected to believe that 63% of Enterprise pubs have increased in value when property values in all sectors throughout the country are in freefall? edited by: Admin at: 18/11/2008 09:47:54 This post replies to this thread |
|
| Graham Barr 18/11/2008 09:24:02 |
Enterprise: £1.3m a month on tenant support Duplicated Post edited by: Graham Barr at: 18/11/2008 09:24:14 This post replies to this thread |
|
Inez Ward 18/11/2008 09:49:10 |
Enterprise: £1.3m a month on tenant support Global recession, unemployment figures rising dramatically, repossessions up 41%, electricity prices up 18%, food up 8.3%, inflation up 5.2%, gas up 28 - 49.9%, RPI increase of 4.5%, product increase of roughly 7.5%, business rates and national minimum wage increases and trade in decline by 8 - 10%. These are not my figures but nationally produced and publicized figures. The Enterprise level of licensee profability fell by just 4%, the maths just do not add up. Either Enterprise have such a wonderful model that it bucks all national trends or the smoke has just cracked the mirrors. One has to wonder if Enterprise has done a survey of their estate and produced the figures from their licensees accounts? This post replies to this thread |
|
| brian clarke 18/11/2008 10:34:48 |
Enterprise: £1.3m a month on tenant support WELL WELL WELL ,ESTATE VALUED UPWARDS HOW CAN THIS BE IN TODAYS CLIMATE. SURELY THE CITY ARE NOT GOING TO FALL FOR THAT! MY PREDICTION FOR NEXT YEAR IS UNFORTUNATLY THAT THEY WILL HAVE 25% OF THE ESTATE EMPTY OR RUNNING WITH TENANTS AT WILL BY EASTER, ITS GOING TO BE A LOT HARDER THAN THEY THINK AND THAY HAVE NOT GOT MUCH ROOM TO REJIG THE SO CALLED ROBUST MODEL, MORE AN ON THE WAY BUST MODEL! This post replies to Inez Ward > Enterprise: £1.3m a month on tenant support |
|
| Tony Preston 18/11/2008 11:18:43 |
Enterprise: £1.3m a month on tenant support £45,000 PROFIT? Has anyone told our Ted that PROFIT is money left over after all deductions and running costs - PROFIT is not the money paid to the licensees for the work they do - that's called a wage, it's the money made by the business - you know, the stuff left over to re-invest and maintain their property and our business etc. Perhaps there is some special quantum law that exists around individuals that take up the mantle of PubCo CEO whereby the time/space continuum is distorted to an extent that they exist in parallel worlds - reality distorted. Perhaps it's not their fault. Perhaps in the other world, we are all happy, the estate is increasing in value (honest, he's not saying that in our world just so the banks don't worry about the servicing of his debt, honest!) Perhaps actually I'm wrong, and the reduction in customers is actually an inverse reduction - so yipee, we are better off than before. Why didn't I ever see this. We are not making less money - the reduction is inversely proportional to our original take - yipeee, we are making more money from our increased number of customers. Oh, I'm so happy, and at Christmas - what a boon. (Bubble bursts - quantum flux reverts to normal - parallel world disappears) Oh, reality - I'm back - (gloom casts a weary shadow on the positivity of life....) This post replies to this thread |
|
| Tony Preston 18/11/2008 13:46:35 |
Enterprise: £1.3m a month on tenant support Interesting all this information about 'help' and concessions (in an apparently healthy market!) is here today as the BEC investigate them..... This post replies to this thread |
|
martin kay 18/11/2008 17:18:02 |
Enterprise: £1.3m a month on tenant support Interesting, if one reads the actual statement. For the first time I can recall, it is now described as "potential" income. Oh dear, FMT again. I guess that basically this means that as rent is 50% of profit, and believed to be so, then the tenant earns the same as the rent they pay. Hardly rocket science. This post replies to Inez Ward > Enterprise: £1.3m a month on tenant support |
|
| Inez Ward 18/11/2008 20:49:48 |
Enterprise: £1.3m a month on tenant support Martin do I perceive some hostility here? Hardly rocket science, hmmm, I think I might just get that one but that is not the problem is it? The problem is that in many cases, in my opinion far too many cases, tenants are not paying 50% of profit in rent and are in fact paying more! This post replies to martin kay > Enterprise: £1.3m a month on tenant support |
|
| martin kay 19/11/2008 07:29:05 |
Enterprise: £1.3m a month on tenant support Inez, I'm not sure where you detect hostility or where it may be directed. Anyway, none intended. A number of posts obviously consider the quoted earnings as being too high. You were initially wondering if they produced their figures from tenants accounts. As I think this unlikely, I was putting forward an alternative. As they refer to "potential" income, I think it not unlikely that their thought process goes like this; they assess rents at c50% of FMT divisible balance (potential?) it follows that their rents equal the earnings of their tenants. So in reporting average earnings, all they are doing is quoting their average rents. It is this methodology I was referring to as not rocket science. This post replies to Inez Ward > Enterprise: £1.3m a month on tenant support |
|
|
||
