Enterprise sees £2m dip in sales due to snow
Snow caused Enterprise Inns to take a £2m hit in sales over the Christmas period as customers decided to stay at home.
The revelation came as part of an interim management statement from the firm for the 16 weeks to 15 January 2011.
Enterprise said it had a "solid" start to the financial year before the snow came
But even without the effects of the adverse weather, Enterprise estimated that average new income per pub was down by around 1% during the period, with like-for-like net income per pub in its "substantive" estate down by 2%.
"Adverse weather conditions in the key trading period leading up to Christmas caused difficulties for many of our licensees. Whilst the distribution network performed well, the dangerous conditions caused by the extreme cold and snow kept many customers at home at a time when pubs across the industry would expect trade to be at its peak," it said in a statement.
And it added: "Whilst the adverse weather has somewhat distorted performance statistics in the short term, we remain confident that average net income per pub for the whole estate and like-for-like net income in the substantive estate will improve during the year."
Meanwhile the company indicated that the disposal of pubs that did not fit the profile of the business continued to be "successful". In the period it has exchanged contracts for the sale of 105 pubs, generating £32m - a profit of £4m over book value.
In the full year, Enterprise expects to shed 400-500 pubs, generating £125m. In London, it expects to sell 50-60 properties on a sale and leaseback basis, having sold 58 for £73m so far.
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By Neil Gerrard
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