Enterprise profits jump as expansion pays off
Profits at Enterprise Inns have leapt as Britain's biggest pub operator reaps the benefits of investment in the quality of its estate. The leased and tenanted giant has reported a 69 per cent increase in operating profits to £253.3m in six months to the end of March, making an average profit of just under £30,000 from each of its 8,600 pubs. The interim dividend was increased by 56 per cent to 5.6p.
The Unique Pub Company business, acquired by Enterprise in March 2004, has now been fully integrated. As a result, the company expects to generate £27m in savings from the combined operations during this financial year.
Enterprise stressed the increase in average profit per pub to £29,200, up by 9 per cent a year ago, was driven by investment in existing pubs as well as turnover in the estate - 11 pubs were acquired and 94 sold.
Chief executive Ted Tuppen, said "These are excellent results which reflect the effective integration of the Unique business and our continuing investment in improving quality and increasing profitability across our pub estate".
In all, Enterprise spent £24.8m on investment schemes at 540 pubs, "investing alongside licensees to improve the quality and potential of their pub businesses."
Mr Tuppen added: "Against a background where some are talking of a downturn in consumer discretionary spending, our top quality pub estate continues to trade well in what is, and always has been, a challenging and competitive environment."
Enterprise said it will continue to look at acquisition opportunities, applying stringent tests for quality and return on capital to any potential deals.
