Tags: Finance , Smoking

Enterprise Inns mulls REIT as half-year turnover falls

Tuesday 15th May 2007 13:30

Enterprise Inns continues to investigate a Real Estate Investment Trust (REIT) and is holding informal discussions with HM Revenue & Customs (HMRC) to determine whether it could qualify.

In an interview with Thomson Financial News, Ted Tuppen, chief executive at Enterprise Inns, said while a REIT conversion was “appealing” it had to avoid the need for a material restructuring of the business.

Deutsche Bank has urged pub companies to lobby HM Revenues & Customs (HMRC) to evaluate its definition of rent income, which at present doesn’t define beer sales and property rent as a combined income.

In the six months ended 31 March, Britain’s second largest pub owner saw its turnover dip to £453m (2006: £473m) after the sale of its Scottish estate last autumn but pre-tax profit increase from £176m to £183m.

Enterprise said it would continue to enhance the quality of its portfolio through investment, acquisitions and disposals claiming it had pumped £35m into the estate during the six-month period to “improve the quality and potential” of the business.

It also said it was “too early” to drawn definitive conclusions from the impact of the 2 April smoking ban in Wales but expected to gain new customers and market share after the introduction of the ban in England on 1 July.

Smoking ban the catalyst as pub market diversifies >>

Enterprise Inns trading on track >>

Enterprise Inns pulls out of Scotland >>

Enterprise Inns all set for smoking ban >>

Read more on the smoking ban here >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

 

The Caterer Blog
Catch up with more news and gossip on the Caterer Blog here
Newswire
For the latest hospitality news, sign up for our e-mail news alerts.

Featured video - for more, visit Caterer and Hotelkeeper’s YouTube channel >>

    Caterer and Hotel Keeper Jobs
    Most ReadLatest Articles
    Most ReadMost Viewed Articles
    Related Industry Resources
    Sign up to Caterer and Hotelkeeper
    Mobile Site
    Also on Caterer and HotelKeeper
    Blogs