Enterprise Inns pre-tax profit falls
Tuesday 13th May 2008, 3:30PM BST.
Pub operator Enterprise Inns said pre-tax profit for the first half fell 11 per cent to £132 million as the industry faces a tough trading environment.
Earnings before interest, tax, depreciation and amortisation and exceptional items were £256 million, unchanged from last year, the company said.
Chairman Hubert Reid said: “In a period of difficult trading conditions, including the impact of the smoking ban, low consumer confidence and increasing pressures on disposable income, this solid performance reflects the quality of our pub estate and the resilience of our licensees.”
However, the company said it was cautious in its outlook for the rest of the year as consumer leisure spending is likely to remain under pressure for some time.
Enterprise Inns also said following last week’s announcement that the government had cleared its plan to join the REIT scheme, the group is now taking advice on whether to go ahead with the conversion to REIT status.
REIT (real estate investment trust) status would allow people to invest in the company’s estate and would allow the group to switch to a lower tax rating.
Enterprise has around 7,700 pubs in its estate, compared to its biggest rival Punch, which operates around 8,500.
Shares in Enterprise fell on the London Stock Exchange by 3.13 per cent to 472p, although shares in Punch fell further, by 5.69 per cent to 571.50p.
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