UK: Enterprise Inns complains of low profits

Enterprise Inns has warned that falling beer sales and the cost of helping its 7,700 struggling pub tenants is putting pressure on its profits, BBC News informed on July 22.

Shares of Britain's second-biggest pubs group closed down 13.4% in London.

In the first six months of the year the company put more than £3.5 mln into its business recovery scheme, offering reduced rents and discounts for struggling landlords. About £8 mln will be spent on the scheme this year.

According to BBC News, the company’s statement says: "Across the sector, whilst food sales are growing, on-trade beer sales continue to be subdued, with industry sources suggesting close to double-digit volume declines in the period from April to June,".
"Consumer confidence is low and the rising costs of food, fuel, mortgage costs and taxes have put increasing pressures on disposable income and discretionary spend."

25 July, 2008