Enterprise Inns sees profits slip

Shares in pub operator Enterprise Inns rebounded this morning after news its profits had fallen pushed them into the red when markets opened.

The company reported profits of £366m for the year to the end of September, down from £405m in 2010.

Adjusted earnings per share were 23.4p, down from 25.9p the previous year.

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Enterprise said that while average net income per pub rose 1% on the previous year, its annual revaluation of pub estate reduced the book value by £173m, or 4%.

Matthew Nelson, a trader at SpreadEX, said some positives could be gleaned from the fact the firm's net debt had been reduced by £302m to £3.003bn.

"Unfortunately, reducing the debt has led to the disposal of key pub assets, which in turn has reduced revenue from £758m to £711m and it will remain to be seen whether this downward trend in revenues can be halted as the firm looks to lower its gearing and the consumer environment remains difficult," he said.