Bank loan deal could herald management change at Enterprise Inns
Simon Townsend, Enterprise Inns' chief operating officer, is being tipped to succeed Ted Tuppen, the pubco's chief executive, within the next 18 months.
According to a report in today's Times newspaper, a senior management reshuffle could come in the wake of any announcement that Enterprise had secured the support of its banks regarding its efforts to refinance its £1bn bank loan.
Enterprise could confirm as early as tomorrow that it has successfully refinanced its bank loan when it reveals its financial results for the first half of the year, although some analysts believe a deal is more likely to be sealed in the coming weeks.
In the event of any succession changes Tuppen, according to the Times, would assume the role of chairman of the group he founded nearly 20 years ago.
The City will be hoping that Enterprise reveals an increase in the number of its 7,000-odd pubs on substantive agreements rises when it announces its interim results tomorrow, perhaps to as much as 85 per cent of its estate, from the 83 per cent figure the company revealed earlier this year.
"If the top 80-plus per cent of Enterprise's estate does better than the three per cent decline we saw at the last update then that will be a positive sign," said one analyst.
However others remained concerned that the long-term outlook for licensees remained uncertain, with consumer spending likely to come under further pressure with any new government raising taxes.
A spokesman for Enterprise declined to comment on the Times' suggestion that a refinancing deal could be imminent, but said the company had "consistently expressed confidence in the strength of its balance sheet".
