Overall ranking: 25 (7)
Pub ranking: 3 (1)
Ted Tuppen – Snapshot
Ted Tuppen is chief executive of Enterprise Inns, the UK’s second largest pub operator with an estate of around 7,700 leased and tenanted pubs. The group reigned as the UK’s largest operator until the end of 2005, when arch-rival Punch Taverns snatched back the crown with its re-acquisition of the Spirit Group.
Ted Tuppen – Career guide
Ted Tuppen, who was born in 1952, started his career as a chartered accountant. He worked with accountants KPMG in London, North America and Europe before becoming the managing director of a privately-owned international engineering company between 1980 and 1989. He also acted as a consultant to a variety of businesses.
Tuppen moved into the pub sector in 1991 when he led the management buy-in of 372 pubs from Bass that marked the birth of Enterprise Inns.
Ted Tuppen – What we think
Ted Tuppen has pursued an aggressive acquisition policy that has built Enterprise Inns into the profitable giant it is today.
The group owned fewer than 500 pubs when it floated on the London Stock Exchange in 1995. It ended the 1990’s with 2,430 sites, boosted by a 1999 spending spree that added a net 901 pubs from the purchase of Mayfair Taverns for £37.4m, Century Inns for £139m and 217 more Bass pubs for £69.3m.
The estate grew steadily with the £118m acquisition of 183 Swallow pubs from Whitbread in 2000. The following year, Enterprise Inns added 439 pubs from Morgan Grenfell Private Equity and 431 pubs from Scottish & Newcastle, paying £266.7m and £269.5m respectively.
But 2002 and 2004 proved to be the key years in the group’s meteoric growth. As well as buying 1,860 pubs from Laurel Pub Holdings for £881m in 2002, Enterprise paid £75m for a 16.8% stake in a consortium created to buy 3,210 Unique and 940 Voyager pubs from Japanese investment bank Nomura. These pubs accounted for 7% of the British total.
In March 2004, Enterprise bought out the rest of what had become the Unique Pub Company for £609m. The addition of 4,054 Unique pubs nearly doubled the size of the Enterprise portfolio to more than 9,000 sites, although it sold 239 venues to Admiral Taverns for £61m the following month to avoid referral to the Competition Commission.
Despite this rapid expansion, Enterprise has delivered consistent growth and continuously refined its estate. In the past six years turnover has increased steadily from £172m in 2000 to £919.9m in 2005, while pre-tax profit has grown from £44.1m to £305.6m (with a slight blip in 2001).
In November 2005, Ted Tuppen revealed that licensee profitability had grown by 5% over the year to an industry-leading average of £42,000.
And during August 2006, Enteprise Inns helped create a new pub giant when it sold 769 smaller, wet-led pubs to Admiral Taverns for £318.1m in order to mitigate the impact of the looming smoking ban.
In the peer-reviewed Britain’s Most Admired Companies 2005 rankings, Enterprise Inns came 37th (up from 59th the year before) in the pan-industry top 220 to be recognised as the country’s fourth most esteemed hospitality group.
As well as steering the development of Britain’s second biggest pub company, Ted Tuppen served as chairman of the pub and leisure group at the British Beer and Pubs Association during 2004 and 2005.
Ted Tuppen – Further information
Enterprise Inns profile on Wikipedia