Enterprise Inns posted a drop in first-half profits today (12 May) as the company paid one-off charges linked to a drop in property prices.

For the six months to 31 March, pre-tax profits dropped to GBP9m from GBP122m the previous year, after Enterprise paid one-off charges of GBP94m linked to lower property prices and the value of interest-rate swaps.

The UK pub firm said it will scrap its interim dividend payment as it looks to reduce a GBP3.8bn pounds debt.

Revenue declined 7.8% to GBP404m, compared the same six months a year previously.

"We expect trading conditions to be challenging through the second half of the year," chief executive Ted Tuppen said, "but, whilst cautious, we remain confident in our strategy and in our ability to deliver results for the full year in line with our expectations."

EBITDA dropped to GBP225m in the period from GBP256m in 2008. Adjusted to take account of the timing of Easter and the reduction in the number of pubs in the estate, the decline in EBITDA per pub is around 10% and net income per pub is down by 8%.

"In the face of very challenging trading conditions across the pub sector, these are solid results which reflect the quality of the Enterprise Inns pub estate, the skills and determination of the Enterprise Inns team and the resilience of the leased and tenanted pub model," said Tuppen.