Enterprise Inns cuts debt load in face of challenging trading
DEBT-LADEN pub group Enterprise Inns yesterday announced it has reduced net borrowing by seven per cent to £2.9bn during the six months to 31 March, helped by the sales of loss-making properties.
The company, which owns around 6,100 pubs across Britain, also said that income across its total estate dropped by 1.6 per cent for the same period.
First half profit before tax and exceptional items was £64m.
“We have been subjected to extremely challenging conditions during the past four years, with cost pressures, consumer weakness, political interference, pressure on asset valuations and the volatility of capital markets combining to make life difficult,” said chief executive Ted Tuppen.
He added that conditions would “remain challenging” but a summer of major events – including the Olympics and the Jubilee celebrations – would bring customers to his pubs.
The company is preparing for the crunch date of December 2013 when it has to refinance its bank facilities.
Shares in the firm did not move.