Enterprise Inns has risen sharply in morning trading after announcing a 1% gain in like-for-like income in the 18 weeks to February 4th.
The company has also announced that Robert Walker, currently Chairman of Travis Perkins, will take over as Chairman on March 31st.
The boost in like-for-like income, which compares pubs open for longer than a year, applies to the "substantive estate" which forms 95% of the company's portfolio. The "entire estate" was actually down by 2% compared to the equivalent period of 2010/11.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Average net income per pub which includes disposals of under-performing pubs, was almost 5% ahead during the 18-week period, compared to a 1% improvement for the whole of the last financial year.
Disposals have been a big factor for Enterprise, with expected proceeds from all asset disposals of between £150m and £200m this financial year.
The reason disposals matter is because debt is also an issue. Bank borrowings have been reduced to £420m, down from £446m at the end of September last year. Total banking facilities stand at £465m.
By 11:17, the stock had gained 5.9%. Over the last 12 months, however, Enterprise shares have fallen 59%.
BS
