It's very much still work in progress at pub group Enterprise Inns (ETI). In terms of trading, its northern-based pubs registered their first like-for-like net income growth for several years, helping support group turnover in light of 226 disposals made in the year. And of the potential 285 of its publicans who could have opted for the new market rent only option introduced via new legislation, only 94 asked for a quote. Chief executive Simon Townsend said it was too early to know the outcome of this but was confident the incentives of staying tied were attractive.
Another positive was an upward revaluation of the group's property portfolio for the first time in several years. Independent valuers suggest the estate is worth 0.1 per cent (£3m) more compared with a 2.7 per cent fall (-£101m) the prior year. It also continues to tackle the large debt pile it has been fighting since the financial crisis. A partial refinancing of its debt saw a new £250m corporate bond issued which is due in 2022, compared with 2018, and at a coupon of 6.37 per cent compared with 6.5 per cent.
Analysts at Panmure Gordon expect pre-tax profit of £125.1m for the year to September 2017, leading to EPS of 21.2p, compared with £123.4m and 20p in FY2016.
| ENTERPRISE INNS (ETI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 101p | MARKET VALUE: | £497m | |
| TOUCH: | 100.5-101p | 12-MONTH HIGH: | 114p | LOW: 70p |
| DIVIDEND YIELD: | nil | PE RATIO: | 7 | |
| NET ASSET VALUE: | 294p* | NET DEBT: | £2.2bn | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 692 | 34.0 | 8.8 | nil |
| 2013 | 639 | -42.0 | -0.8 | nil |
| 2014 | 632 | 36.0 | 5.9 | nil |
| 2015 | 625 | -71.0 | -13.0 | nil |
| 2016 | 632 | 75.0 | 14.2 | nil |
| % change | +1 | - | - | - |
*Includes intangible assets of £330m, or 67p a share | ||||
