Solihull-based pubco, Enterprise Inns, has suffered an annual loss of £65 million due to a revaluation of its pub portfolio.
The largest pub owner in the UK Enterprise, confirmed that the loss compared with a £30m surplus last year, was after net exceptional charges of £162m (2014: £65m). This revaluation saw the overall estate value decline by 2.7% (2014: a decline of 1.9%).
In the full year to September 30 2015, the business saw like-for-like net income growth of 0.8%; aided by growth of 1% in the final three months.
EBITDA before exceptional items was £296m (2014: £302m), which the group said was in line with expectations following the impact of planned asset disposals.
Pre-tax profit and exceptional items claim to £122m (2014: £121m), while adjusted earnings per share were up 2.1% at 19.4p (2014: 19.0p).
Substantial cash generation pushed further net debt reduction, which declined to £2.3bn (2014: £2.4bn). The company confirmed that the current strategic plan for the business was on track.
Also stated was that the delivery of the plan would ensure it could best serve its publicans and customers, while providing a clear path to maximizing shareholder value through the optimization of returns from every asset within the estate.
Simon Townsend, The CEO, commented: “We are pleased to report further operational progress and a second, successive full year of like-for-like growth in net income across our leased, tenanted and free-of-tie estate.
“This has been achieved by maintaining a relentless focus on the many operational activities and initiatives with which we are supporting our publicans to improve their profitability. Trading in the first six weeks of the new financial year has been in line with our expectations and continues to maintain our growth momentum.
“While the market in which our pubs operate remains highly competitive, and as we prepare for the implementation of new legislation in 2016, we are encouraged by the continuing momentum of our business, reflecting the exceptional efforts of our publicans and the strength of our relationships with them.”
