Nov 15, 2016

Enterprise Inns swings to profit for full year

Enterprise Inns has swung to a full-year profit as it continues to reshape its business after the introduction of new regulations for pub companies. As Britain's largest pub operator by number of properties, Enterprise became the first group to announce a radical overhaul of its business after a law was passed giving publicans the right to pay market prices for beer - rather than being tied to a supply deal from their landlord. It has moved to refocus its business, and on Tuesday said it had transferred around 200 tied pubs to a commercial property or managed model, where Enterprise runs the whole business, paying for rent and staffing. Enterprise is also looking to reduce the number of long-term tied leases it offers, as it fears that it could invest heavily in a pub only to see the publican request a free-of-tie model - which could "Adversely affect" its total income. Total revenues rose 1.1 per cent to £632m, while pre-tax profit swung from a £71m loss last year to a £75m gain, as reduced interest payments offset a smaller pub estate and higher administrative costs.

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