Pre-tax profits up for Enterprise Inns

Enterprise Inns, the largest pub owner in the UK, increased its pre-tax profit in the year to the end of September.

The Solihull-based group made £122 million, up £1m on the previous year, despite revenue being down from £632m to £625m.

It made a statutory loss after tax of £65m from a £30m profit a year before after net exceptional charges of £162m which primarily relates to the impact of the total estate revaluation, which is down 2.7 per cent.

Enterprise said the strategic plan for the business is on track. It aims to maximiseshareholder value through the optimisation of returns from every asset within its estate.

Capital investment in the year was up from £66m to £69m of which 44 per cent was focused on growth driving initiatives.

Net proceeds from disposal of primarily under-performing pubs was £75m from £73m the year before and was used to fund the investment programme.

Chief executive Simon Townsend said: "We are pleased to report further operational progress and a second, successive full year of like-for-like growth in net income across our leased, tenanted and free-of-tie estate. This has been achieved by maintaining a relentless focus on the many operational activities and initiatives with which we are supporting our publicans to improve their profitability."

Mr Townsend said trading in the first six weeks of the new financial year had been in line with expectations and continued to maintain growth momentum.

Over the year Enterprise and its publicans invested around £800,000 in improving its West Midlands pubs.

The Duke of York, Wolverhampton re-opened following a £100,000 refurbishment which saw the city centre site revert to its original name and convert into a contemporary ale house.