Ei Group sees first-half revenue up 1.6%

15-May-2017 - Last updated on 16-May-2017 at 10:10 GMT

On track: Ei Group reports figures in line with expectations

Related tags Like-for-like net income Income

Ei Group, formerly Enterprise Inns, has reported a 1.6% increase in like-for-like net income across its tenanted and leased estate for the six months ending 31 March 2017.

The company said it was performing well with all operations maintaining like-for-like growth momentum and that its strategic evolution was on track.

Chief executive officer Simon Townsend said the company was pleased to have maintained growth in its leased and tenanted estate while making “significant progress” in building its commercial property portfolio and managed businesses.

"Our transformation of the group remains on track,” he said. “Trading in the first six weeks of the second half of the year has been strong, assisted by the timing of the Easter holiday period.

“We expect our trading performance to reflect more challenging comparatives in June and July as we benefited from the UEFA European Football Championship last year.”

Remains vigilant

Townsend said the company was mindful of the potential for continuing economic uncertainty over the coming months, and “remains vigilant” regarding possible headwinds from the pubs code depending upon its interpretation and application.
“Whilst taking into account these factors, we are confident that we will continue to deliver positive like-for-like net income growth in our leased, tenanted and commercial estates for the full year,” he said.

“We are encouraged by the trading performance of our expanding portfolio of managed houses, and we remain committed to the successful implementation of our strategic plan to deliver long-term growth in shareholder value,".

Climbing revenue

Group revenue climbed from £305m to £310m, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months ended 31 March 2017 stood at £140m, compared to £142m in the same period in 2016, which the company said was in line with expectations and reflected the impact of planned disposals.

Statutory profit after tax reduced to £10m, compared to £33m in the same period in 2016, primarily due to non-underlying finance costs of £30m (£7m in 2016) associated with, previously announced, partial refinancing of the 2018 corporate bonds, which delivered “smoother and extended debt maturity profile”.

Total capital investment during the period was £35m (£30m in 2016) with 57% focused on growth-driving investment schemes (50% in 2016). Average pre-tax returns on all such investment came in at 21% (19% in 2016).