Pub chain Enterprise plans to return cash to investors |
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Mon, 26 Sep 2005 00:35
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LONDON: Enterprise Inns Plc, which operates Britain's largest pubs chain, is plush with funds from its profitable operations that it is returning cash to shareholders through enhanced dividends and a buy-back programme. It said it estimates to have the average operating profit per pub increase by 8 per cent compared with last year. Its pre-tax profits for the first half ending 31 March had gone up by 53 per cent to 143.6 million pounds.
The company is announcing its full-year results on 22 November. While the company looked forward to the proposed changes in licensing laws, it claimed the relaxations would not result in increased drinking. Nor does the company intend to keep its pubs open for 24 hours as mentioned in some media reports. The company's chief executive Ted Tuppen said not one pub in the group has sought a full 24-hour licence. What are applied for are extensions by one or two hours.
Analysts predict that the company may return 200 million pounds a year to its investors. This has been largely possible because the company had abandoned a joint attempt to acquire the 2000-strong pubs chain Spirit. The quoted price for Spirit was 3 billion pounds.
Enterprise operates an estate of 8,700 pubs, most of these part of the erstwhile Unique and Laurel pubs, which it had acquired.
Tuppen said his company's success has been largely as a result of its focus on community-based, local pubs. Another factor is the training the company provides to licensees who run the pubs.
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