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Trading improving up north for Enterprise Inns

The pub group saw its first like-for-like net income growth in its northern-based pubs for several years
November 15, 2016

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.

IC TIP: Hold at 101p

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.

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