Insider Media Limited

Enterprise Inns has increased like-for-like income per pub by 1 per cent in its substantive estate. A new chairman was also appointed at the Solihull pubco.

Robert Walker will succeed Hubert Reid and is to join the board as a non-executive director and chairman following the conclusion of the annual general meeting today (9 February). He will take over the role on 31 March, the pubco said.

Like-for-like income per pub for the first four months of the year to 4 February in the substantive estate – which represents 95 per cent of total pub income – was 1 per cent ahead of the same period last year. The company's entire estate was less than 2 per cent down.

Trading benefited from the comparison with the extreme weather conditions in 2010, Enterprise said.

Average net income per pub was almost 5 per cent ahead during the 18-week period, compared to a 1 per cent improvement for the whole of the past financial year.

"We are pleased to report evidence of progress on many fronts, not least in the reduced level of business failures, a further reduction in the level of overdue balances and a substantial reduction in the cost of financial support for publicans who are struggling with the current economic conditions," the business told the Stock Exchange.

The 110 pubs which have been operating under the Beacon managed tenancy format for at least four weeks continue to deliver net income uplifts of close to 30 per cent.

Enterprise plans to open 150 Beacon pubs by 31 March 2012, with a target of 300 by the end of the financial year.

The company has largely completed its accelerated disposal of underperforming assets, it said.

However, the property team has identified a number of "exceptional properties" which can realise substantial cash proceeds above book value. Sales are expected to be completed during the next two years.

Total proceeds from all asset disposals this year is expected to be between £150m and £200m, with a similar figure next year.

So far this financial year, including a sale and leaseback package of 17 pubs for £24m, Enterprise has completed the sale of 63 pubs for total of £40m – a profit of £2m over book value.

In addition, contracts have been exchanged for the sale of a further 33 pubs, with net proceeds of £33m, including the package of 15 pubs which are in the process of being sold to Fullers for £22.9m announced last week (3 February).