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Positive underlying trends at Enterprise Inns

The pub group's plan to deal with the removal of the beer tie is showing early promise
November 17, 2015

Enterprise Inns (ETI) doesn't want to be left with a hangover when the government's legislation aimed at freeing tied publicans takes effect next summer. Management's plan to tackle the changes, which was announced alongside the interim results, is already budding. The number of managed pubs has risen from 16 in May to 35 at the end of September, and the group's portfolio of commercial properties now runs to 213 sites, from 185 six months ago.

IC TIP: Hold at 100p

The company is expecting some 200 pubs to opt for the 'market rent only' option in the current financial year to September 2016, and some 600 per year to take the plunge after that. Chief executive Simon Townsend said many publicans were "keeping their cards close to their chest" as to what they might do. But he is hoping that the £69m invested by Enterprise in its estate in the year will help keep landlords interested in so-called 'wet rent'.

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