Enterprise Inns' results ahead of expectations
Beers volumes and AWP income have fallen "marginally" across Enterprise Inns' 139 Scottish pubs under the new smoking restrictions compared with its outlets in England and Wales, according to the group.
Announcing overall results for the six months to March 31, Enterprise says it is "too early to draw definitive conclusions on the impact of the total ban", although it notes it is "pleased with the efforts" of its licensees to mitigate its effects.
Enterprise's profits before tax and exceptional items rose 12.5 per cent to £153m, while average earnings per pub grew 5.4 per cent to £31,200 per annum.
Normalised earnings per share rose 17 per cent to 31.8p, while the interim dividend payable on July 4 is 9p a share, up 61 per cent.
Commenting on the figures, chief executive Ted Tuppen says the strong results were achieved against a difficult trading background.
"The strength of this performance reflects our commitment to constantly improving the quality of our pub estate and to providing top quality support to our licensees in this challenging market."
The group said it was encouraged by the "optimism" of its licensees in England and Wales regarding an impending smoking ban, due to be implemented next summer.
However the group acknowledged that those "poorer quality, predominantly wet-led pubs will almost inevitably suffer some permanent decline in trade, whilst better quality pubs with a more diverse offering…will gain new customers and market share".
The group sold 76 pubs during the period, realising £20m, and acquired 65 pubs at a cost of £58m. Capital expenditure amounted to £26m.
Its share buyback programme had seen 21.1m shares bought for £192m and purchases would continue into the second half.
