Axed beer tie prompts Enterprise to grow managed pub estate

Pub giant Enterprise Inns has revealed plans to operate 750-850 managed pubs by 2020 as part of a new strategy prompted by an MPs' vote in favour of axing the ‘beer tie'.

Politicians backed legislation to end beer tie arrangements, last November, which led to warnings of further pub closures.

Entrerprise outlined its aims in the company's interim results, which reported that like-for-like net income growth for the six months to 31 March was up 0.6% (2014: 1.1%).

It now intends to have more pubs managed by the business itself, rather than tenants. Around 60% of Enterprise's estate is leased and it faces falling beer sales when tenants are no longer restricted to sourcing product from their landlords in years to come.

Simon Townsend, chief executive officer, said: "This new strategic direction will ensure that we generate the greatest value from each of our assets, and will also accommodate the requirements of the new legislation.

"This is a sustainable strategy for our business which embraces different operating models to best serve our publicans and their communities whilst delivering greater value to our shareholders."

Pre-tax profit for the first half of the company's latest financial year was £10m after £47m in exceptional items were taken into account (2014: £47m after exceptionals), while EBITDA remained broadly flat at £144m (2014: £145m).

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