The Investmnet Column: Local cheer
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Pub operator Enterprise Inns is proving the claim that managed pubs outperform tenanted rivals a load of froth, belying the cult of centralisation. Yesterday's interim results showed Enterprise holding volumes and lifting income per pub by 5 per cent despite UK pub volumes falling by 4 per cent.
Chief executive Ted Tuppen concedes that if your local inn is "dingy with a bit of character", it's probably operated by Enterprise. The key to extracting value is a tightly-knit management structure devolving responsibility to a regional manager who is in close touch with the 50 or so landlords in his patch.
Interim pre-tax profits rose 36 per cent to pounds 13.7m, with earnings per share up 31 per cent to 15.3p, following a full contribution from the Gibbs Mew sites bought in March 1998 and a maiden contribution from Mayfair Taverns' operations, bought in October.
The full-year results should benefit from the addition of Century Inns' 498 pubs to its 1,772 operations. That has left the group with hefty gearing of 132 per cent. Mr Tuppen believes his shareholders would like him to raise gearing further and can spend about pounds 100m on acquisitions.
Analysts forecast pre-tax profits of around pounds 35.2m and earnings of 35p per share this year, putting the shares on a forward p/e of 12. With Enterprise's devolved power structure helping to hold its position and acquisitions in the pipeline, investors can expect annual earnings growth of about 10 per cent. The shares are good value, but should not be chased.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments