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Enterprise Inns' shares fizz despite flat profits

Revenue and EBITDA were both around £6mln lower for the year

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The pub owner, which boasts the Michelin Star Harwood Arms in Fulham as part of its portfolio

Enterprise Inns (LON:ETI) saw pre-tax profits were flat last year, but statutory losses widened after the property value of its pubs was cut.

Every year the largest pub owner in the UK revalues its estate, and in the last 12 months, found its property had fallen £163mln, according to valuers Colliers.

In the previous year, when Enterprise had conducted the valuation itself, it fell £75mln.

It meant the pub owner, which boasts the Michelin Star Harwood Arms in Fulham as part of its portfolio, swung to a loss of £65mln on the year, having previously made a £30mln profit in 2014.

But pre-tax profit was flat at £122mln for the year (£121mln in 2014), with underlying earnings [EBITDA] in line with expectations.

Revenue and EBITDA were both around £6mln lower for the year due to the disposals of under-performing assets, and tough comparablies, as the previous year was boosted by the FIFA World Cup.

Enterprise ended the year strongly, with like-for-like net income growing by 1.0% in the final quarter resulting in an increase of 0.8% for the full year.

Simon Townsend, chief executive, said he was “encouraged” by the results, adding that trading for the six weeks of the new financial year had been “in line”.

Shares were almost 5% higher on Tuesday to 99.6p.

Quick facts: Enterprise Inns

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LSE:ETI
Market: LSE
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