Enterprise Inns

Telephone:

0121 733 7700

Website:

http://www.enterpriseinns.com (Opens in New Window)

Activities:

Enterprise Inns has expanded at a rapid pace since its creation in 1991 and quickly became the UK’s largest pub operator  until early 2006 when its closest rival, Punch Taverns, took the lead following the re-acquistion of the Spirit Group.

Enterprise Inn's estate is composed of unbranded tenanted and leased properties.

Sector:

Timeline:

  • 1991: Chief executive Ted Tuppen leads the management buy-in of 372 pubs from Bass that marks the birth of Enterprise Inns.
  • 1995: The group, which now numbers fewer than 500 pubs, floats on the Stock Exchange.
  • 1999: Enterprise buys Mayfair Taverns for £37.4m, Century Inns for £139m and 217 more Bass pubs for £69.3m. The spending spree swells its estate by 901 pubs to 2,430.
  • June 2000: The group buys 183 Swallow pubs for £118m from Whitbread, which bought the Swallow Group of hotels and pubs in January.  It sells on 30 of the pubs for £50m.
  • 2001: In June, Enterprise snaps up 439 managed pubs from Morgan Grenfell Private Equity for £266.7m. The following month it buys 431 pubs from Scottish & Newcastle for £269.5m as part of a joint acquisition with Robert Breare’s Noble House Leisure.
  • March 2002:  Enterprise announces that it has invested £75m for a 16.8% stake in Newco, a consortium created to buy 3,219 Unique and 940 Voyager pubs for more than £2b from Japanese investment bank Nomura (an estate that accounts for 7% of all UK pubs).
  • May 2002: The group buys 1,860 pubs from Laurel Pub Holdings for £881m, bumping up its estate to 5,300 pubs. In December it reveals it is in talks with Breare to launch a joint bid for Wolverhampton & Dudley.
  • March 2004:  Enterprise buys outright the 4,054-strong Unique Pub Company (Newco changed its name in June 2002). The £609m acquisition makes Enterprise the UK’s largest pub company with more than 9,000 venues.
  • April 2004: Enterprise sells 239 pubs to Admiral Taverns for £61m to avoid referral of its Unique purchase to the Competition Commission. 
  • March 2005: Enterprise completes the integration of the Unique Pub Company and sells 41 more pubs to Admiral Taverns for £10.45m.
  • May 2006: The group refinances its syndicated debt at more attractive rates, more than doubling its facility from £490m to £1b for a five-year term.
  • September 2006: Enterprise agrees to sell 769 pubs (one-quarter of which are based in London and the South-east of England) to Admiral Taverns for £318.1m. The sale leaves the group with 7,700 pubs.
  • November 2006: Entreprise pulls out of Scotland with the £115m sale of its 137-strong Scottish estate to Retail and Licensed Properties, a company owned by Laurel pub owner Robert Tchenguiz's investment vehicle R20.

Chief Executive:

Ted Tuppen

Key People:

Chief financial officer: David George
Chief operating officer: Simon Townsend
Non-executive chairman: Hubert Reid

Commentary:

Enterprise Inns has grown at a meteoric rate since its creation in 1991 from a core of 372 Bass pubs. thanks to a string of canny acquisitions that showed marked peaks in 1999, 2002 and 2004. The outright purchase of the Unique Pub Company in 2004 nearly doubled its portfolio to more than 9,000 venues before subsequent disposals.

The group’s expansion has also been achieved profitably. Between 2000 and 2004, when turnover grew from £172m to £713m, Enterprise boosted its pre-tax profits from £44.1m to £213m (with a slight blip in 2001) and its market capitalisation from £277m to £1.99b.

 

Strategy:

"We are working on refinancing our existing balance sheet, where current market parameters suggest that we could raise some £750 million of additional debt. We expect this refinancing process to be completed by the end of the calendar year and to be structured in a way that would not adversely impact our ability to generate shareholder value through the implementation of any other corporate structures that might become attractive in the future."

Source: interim results statement, 15 May 2007

Operating Data:

Number of pubs: 7,713 in March 2007

Financial Snapshot:

Full year
Turnover:  £970m (2005: £952m)
Pre-tax profit: £415m (2005: £275m)

Half year

Turnover: £453m  (2006: £473m)
Pre-tax profit: £183m (2006: £176m)
 
Financial year end: 30 September 2006
Half-year end: 31 March 2007

Address:

Cranmore Avenue
Shirley
Solihull,
West Midlands
UK