Insider Media Limited

Solihull-based Enterprise Inns looks set to sell more pubs after saying it does "not underestimate the impact of the government's austerity measures" on its licensees and customers. The pub group has revealed a profit of £26m after tax for the year ending 30 September 2010, but says it disposed of 579 "non-core pubs" generating £166m during the year and expects to sell more at a "similar level" during the coming year.

The yearly results show earnings before interest, tax, depreciation and amortisation (EBITDA) before exceptional items of £405m - it was £450m in 2009. Average net income per pub is reported as "stable in second half," and £63,900 for the full year. The 2009 figure was £65,000. Net debt was reduced by £374m.

Ted Tuppen, chief executive of Enterprise Inns, said: "We have delivered creditable results, hard won stability and genuine operational improvements in difficult circumstances.

"The economic environment is set to remain challenging and we do not underestimate the impact of the government's austerity measures and fiscal tightening which will affect both our licensees and their customers.

"However, the past year has demonstrated the resilience of the best pub operators in the industry and we believe that the profile of our estate, combined with the professionalism and flair of our licensees leaves us well placed to face whatever challenges the year ahead may bring.

"We remain confident that the business is in a sound position to deliver positive returns to shareholders over the medium term, including the resumption of dividend payments."

During the year, 579 pubs and other plots of land with a book value of £137m were sold generating gross proceeds of £166m which, after taking account of disposal costs of £8m, resulted in an overall profit of £21m.

Another 71 pubs were sold as part of the group's "sale and leaseback programme". These pubs generated gross proceeds of £114m and resulted in a profit over book value, after fees, of £31m. The company said these pubs were immediately leased back by the group and are now classified as pubs held under operating leases.