Enterprise Inns plc Annual Report and Accounts 2012

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Contents Our Business Chairman’s Statement 1 Highlights 4 Chief Executive’s Review (incorporating the Business Review) Our Governance Directors’ Report 12 Risks and Uncertainties 19 Statement of Directors’ Responsibilities 23 Governance Report 24 Audit Committee Report 34 Directors’ Remuneration Report 37 Our Accounts Group Income Statement 53 Statements of Comprehensive Income 54 Balance Sheets 55 Statements of Changes in Equity 56 Cash Flow Statements 58 Notes to the Accounts 59 Independent Auditor’s Report 103 Five Year Record 105 Shareholder Information 5 Pictures – top to bottom: Station Inn, Whitby Hinds Head, Stockport Lord Binning Pub and Kitchen, Kelsall Fox Inn, Middle Barton Analysis of Ordinary Shareholders 106 Shareholder Information 107 Notice of Annual General Meeting 109 Explanatory Notes to the Notice of Annual General Meeting 113 Community Hero Award Winners 115 Enterprise Award-Winning Pubs 2012 116 For more information go to: enterpriseinns.com
Chairman’s Statement Introduction I am pleased to present our results for the financial year ended 30 September 2012, my first year as Chairman. I joined the Board on 9 February 2012 and took over responsibility from Hubert Reid with effect from 31 March 2012. Enterprise Inns plc is the largest operator of leased and tenanted pubs in the UK, with 5,902 trading pubs under ownership at year end. The leased and tenanted pub model serves us well; it allows us to provide extensive support to our Publicans whilst also investing in the long-term value of our assets. Results The 2012 financial year has been one of steady progress for Enterprise. The Company has maintained momentum towards its goal of like-for-like growth in pub income and improved the quality of its estate through both investment and the disposal of underperforming pubs. During the year, disposals generated £208 million and the proceeds have largely been used to reduce net bank borrowings from £446 million to £310 million at 30 September 2012. In addition we have used available cash to purchase and cancel £65 million of Unique bonds at an average discount of 20%. Secure asset backing and the strong cash generative nature of our business have enabled us to agree a new Forward Start Facility of £220 million, which extends the availability of bank funding through to 2016. We have also invested in additional senior management to lead our regional management teams and have appointed a property managing director to optimise the returns from our large and diverse property portfolio. These moves, together with a strengthened Commercial team, emphasise our focus on further improving our trading performance. Dividend The Board believes that, given current economic uncertainty, it is not appropriate to resume the payment of dividends at this time. The Board currently believes that the best use of available cash is to reduce debt, such that we achieve a long-term transfer of value to shareholders. Board of Directors On behalf of the Board, I would like to thank Hubert Reid for his excellent leadership of the Board for the past 15 years. Hubert has been an enthusiastic and tireless supporter of the business and we wish him well for the future. Over the next few years, there will inevitably be changes in the non-executive membership of the Board and the Nominations Committee will proactively manage the process to ensure these changes bring additional and appropriate skills relevant to the Enterprise business model. Employees & Publicans Our engaged and hard-working colleagues and Publicans are critical to our success and I would like to thank them, on behalf of the Board, for their fine efforts during the past year. Outlook We complete the 2012 financial year in good shape, having made progress in many areas and having invested significant sums into the quality of our estate and our internal resources to ensure that we are well placed to tackle the continuing volatility and challenge of the current market. We are confident that the quality of our pub estate, the flair and resilience of our Publicans and the skills and commitment of our team will continue to deliver solid results, whatever the market conditions. We are now focused on returning the business to growth, through a number of initiatives that we believe will continue to generate significant cash flows which we will use to reduce our debts and deliver value for shareholders. Our Business Annual Report 2012 R M Walker Chairman 19 November 2012 Anglesea Arms, Hammersmith 1
Page 1: Securing the pathway to growth Ente
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Group Income Statement for the year
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Balance Sheets at 30 September 2012
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Statement of Changes in Equity at 3
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Notes to the Accounts at 30 Septemb
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Five Year Record Year ended 30 Sept
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Shareholder Information Annual Gene
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Community Hero Award Winners Hare I
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