Insider Media Limited

Solihull-based pubco Enterprise Inns said that extreme weather conditions could have a detrimental impact of about £2m on its operating profit for the first quarter of 2011. In its interim statement this morning (20 January 2011, the pub giant also announced further plans to sell off 400-500 pubs over the next year, which it estimates will net the company £125m.

Enterprise revealed the results through its interim statement for the 16 weeks to 15 January 2011 on the Stock Exchange this morning.

The company said that the impact of the extreme weather conditions of the past four months would effect its operating profit by “no more than £2m”.

The company added: “We can take further encouragement from performance during the three weeks following the quarter end where, against easier comparables due to last year's poor weather, some of this December shortfall has already been recovered.”

Enterprise estimated that net income per pub would be reduced by 1 per cent during the period.

In the 16 week period, Enterprise completed the sale of 105 pubs, generating net proceeds of £32m. Over the coming year, Enterprise expects to sell off a further 400-500 pubs, generating total net proceeds in excess of £125m.

In addition, the company agreed a £42m agreement to leaseback its properties earlier this month.

The company said: “Trading conditions are likely to be challenging throughout the year as licensees and consumers alike face the prospect of economic uncertainty, increases in duty and VAT, rising costs and higher unemployment. However, there is clear evidence that a significant majority of our estate is successfully facing up to these challenges and trading well.”