Pub group Enterprise Inns' (ETI) half-year performance was hit by poor weather and weak consumer conditions. Accordingly, like-for-like net income slumped 4.2 per cent year on year and the group's adjusted cash profit fell 9 per cent to £153m.
But Enterprise is make progress with cutting its heavy debt pile. Indeed, selling 161 pubs in the period generated £54m of cash, compared with £89m in 2012's first half. That has left Enterprise on track to raise the £150m needed from disposals this year to help bring the net debt pile down to £2.5bn by the financial year-end. Within that total, £1.185bn of asset-backed bonds are due for refinancing in 2018 and management expects to pay the first £60m debenture - due in February 2014 - from existing cash flow. The group also invested £29m in enhancing its estate, with a similar rate of spend anticipated in the second half. Moreover, second-half trading is improving - adjust for the early Easter, and the rate of decline in like-for-like net income has improved to around 1 per cent.
Broker Numis Securities expects adjusted pre-tax profit of £128m for 2013, giving EPS of 19.4p (from £137m and 20.4p in 2012).
ENTERPRISE INNS (ETI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 100p | MARKET VALUE: | £506m | |
| TOUCH: | 99.9-100p | 12-MONTH HIGH: | 115p | LOW: 55p |
| DIVIDEND YIELD: | nil | PE RATIO: | 31 | |
| NET ASSET VALUE: | 285p* | NET DEBT: | £2.68bn | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 342 | 64.0 | 10.6 | nil |
| 2013 | 312 | 29.0 | 5.00 | nil |
| % change | -9 | -55 | -53 | - |
Ex-div: - Payment: - *Includes intangible assets of £365m, or 72p a share | ||||
