Enterprise Inns blames poor weather for disappointing numbers

Enterprise Inns has blamed the poor weather in the run up to Christmas, and in the New Year, for disappointing figures revealed in its latest interim management statement.

The company saw like-for-like net income for its total pub estate decline by 4.4% or £5m for the 17 weeks to 26 January 2013 but said it expected like-for-likes to improve during the remainder of the year.

It also indicated it was on track to deliver asset disposals of £150m for the full year. And it is expected to bring its total net debt down by £200m to £2.5b during the financial year.

Enterprise said the poor weather was particularly unhelpful when compared to the Indian summer of October 2011, which was good for trade. Snow in the last two weeks led to reduced footfall and a consequential loss of beer volume which was estimated to have reduced the firm's net income by £1.5m.

The administration and subsequent cessation of trading of drinks supplier Waverley TBS also affected trade resulting in a direct loss of £1m in trading income, the firm said. However it has now signed a two-year distribution agreement with Carlsberg and income from wines and spirits should return to normal by the end of March.

In the first 17 weeks of the current financial year, Enterprise completed or exchanged on 88 pubs for proceeds of £32 million and had 34 additional pubs in the hands of solicitors expected to generate a further £17m.

Meanwhile, Peter Baguley was appointed to the board as a non-executive director, having been leader of group property functions at J Sainsbury and Boots.

David Harding has retired from the board after serving nearly ten years as a non-executive director.

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