Enterprise Inns has reported a fall in sales and a swing to pre-tax losses for its latest fiscal year, highlighting the financial pressure on the UK’s largest pub companies.

Enterprise Inns is spending GBP1m (US$1.58m) per month to support pub tenants in financial difficulty, it said today (17 November). The group spent GBP15m on direct financial support to tenants in the fiscal year to the end of September, which contributed to pre-tax losses of GBP31m in the year.

Only a one-off tax gain saved net profits, which increased six-fold on the previous year to GBP26m. Although Enterprise sought to emphasise improved trading in recent months, its results show that the UK pub sector remains under intense pressure.

A cocktail of the smoking ban, Government regulation and a consumer shift to drinking at home have accentuated difficulties for the UK pub industry.

Last month, Enterprise’s rival, Punch Taverns, said that impairment charges on the value of its pub estate ensured that it stayed in the red for its own fiscal year, to 21 August. Punch reported net losses of GBP197.3m, albeit down on losses of GBP278.1m in the previous year.

In the struggle to restore profitability, pub companies have been shedding unprofitable sections of their estate – invariably, pubs that do not have a strong food offering. 

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Enterprise Inns disposed of 579 pubs during its fiscal year. Its estate now stands at 6,820 pubs valued at GBP5bn, according to the firm. Punch sold off 43 pubs during its year and has an estate of around 6,500. Both said that they intend to continue disposing of non-core pubs in the near-term.

Another rival, Mitchells & Butlers, announced yesterday that it has completed the sale of 330 “drinks-led” pubs to Stonegate Pub Co.

Both Punch and Enterprise reported a fall in net sales for their respective 12-month periods. Punch’s sales fell by 11% to GBP1.28bn, while Enterprise’s dropped by around 7% to GBP758m.

With brewers having just endured the worst quarterly performance for beer sales since records began and value added tax set to rise by 2.5% to 20% in January, Enterprise said it is clear that the sector is under pressure. However, it struck an upbeat note: “The past year has demonstrated the resilience of the best pub operators in the industry,” it said.

“We remain confident that in the medium-term the business will be in a good position to deliver positive returns to shareholders,” it added. Enterprise will not pay a dividend to shareholders for its most recent year.

Subscribe to Just Drinks for just £1 for 1 month

Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.

As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the apparel industry’s trajectory and the priorities shaping the profession.

What’s included in your subscription:
  • Personalized Access: Secure login to Just Drinks
  • Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
  • Case Studies & Deep Dives: Real-world applications and in-depth analyses.
  • Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.

Ready to stay informed?

Subscribe to unlock exclusive content.

Already a subscriber? Sign in to access your account.

Just Drinks Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Drinks Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now