Enterprise Inns Share Discussion Threads

[mike740] 04/11/2014 08:42

ETI ENTERPRISE INNS, tech breakout occured. Resistance at 135p 143p and 152p. 02 Oct Deutsche Bank Buy 205.00p TARGT

[jeffian] 30/10/2014 09:36

There's a story floating around that C&C may look at other pubco's if they can't steal Spirit away from Greene King -

"C&C believes “well managed” pubs, such as those operated by Spirit, could potentially help it to revive its fortunes in England and Wales and would offer a clearer route to ensure its products are reaching drinkers."



Rather than "well managed" pubs, they may do well to consider one of the "tied" pubco's where they could require several thousand pubs to stock their products. ETI have done well to steer the company through a very rocky patch but shareholders have yet to see the "return of value to shareholders" that management have been talking about for years, whilst the interests of management themselves, their bankers, their bondholders and even their tenants have been sheltered. Having traded at a +/- 50% discount to NAV for around 6 years now with no dividends, perhaps this is the opportunity to "return value to shareholders" by getting rid of the lot at NAV. C&C probably not big enough, but it's a thought..........

[the troll] 06/8/2014 17:42

IMS tomorrow ( if there's anyone left to care ).

[jeffian] 01/6/2014 14:50

Although there was a growing feeling that the issue of a 'statutory code' governing relations between the pubco's and their tenants had been kicked into the long grass - - stories in the Sunday press (I've seen the Times and Telegraph) suggest that this is going to be slipped into the Queen's Speech for legislation in the coming Parliamentary session, although in each case the reference is hidden away in stories about other issues. They do say that the proposals are unlikely to attack the "tie" itself (the requirement for tenants to buy beer and other supplies from the owners of the property) but there are two other contentious issues which remain to be seen. Firstly, one of the conclusions of the Parliamentary Committee considering the issue was that a 'tied' tenant should be 'no worse off' financially than a free-of-tie tenant. Secondly, campaigners have been trying to get the 'right' for tenants to change their existing tenancies from 'tied' to 'free' subject to negotiating an 'open market rent'. Bearing in mind that over 50% of gross profit at ETI (and presumably PUB) comes from the wholesale profit on selling beer, wines, spirits and minerals and something under half comes directly from rent, the issue raises considerable uncertainty.

All eyes on the Queen's Speech this week then!

[jeffian] 10/2/2014 10:13

Rather old news now but interesting nonetheless. You can still buy the 2025 6.875% and 2031 6.375% Bonds under par.

[pellers] 06/2/2014 09:30

I worked at ETI many years ago and can say Ted was great as a CEO. Simon T is from brewing stock and has been at ETI for years and knows the company inside out. There really was no other person around who could take the company forwards. Value or growth IMHO both

[skinny] 10/1/2014 07:21

Deutsche Bank Buy 158.10 158.10 205.00 205.00 Reiterates

[skinny] 19/11/2013 15:40

In auction +12%

[skinny] 19/11/2013 09:56

Numis Add 147.60 170.00 170.00 Reiterates

[skinny] 19/11/2013 07:02

Highlights

Ø Improving trend in like-for-like net income with growth of 0.6% in the final quarter and a decline of 2.9% for the full year
Ø EBITDA* before exceptional items £313 million (2012: £340 million) primarily reflecting impact of the disposal programme
Ø Focus on operational activities to support publican profitability with £62 million of capital investment across the estate during the year
Ø Strong operational cash generation combined with £150 million net proceeds from disposal programme has reduced net debt by £216 million to £2.5 billion (2012: £2.7 billion)
Ø Unsecured convertible bond issued, raising £97 million, reducing bank debt, net of cash, to £41 million (2012: £310 million)
Ø Like-for-like net income growth has been sustained in the first seven weeks of the current financial year

Statutory results

Ø Profit before tax and exceptional items £121 million (2012: £137 million)

Ø Adjusted earnings per share# 19.0p (2012: 20.5p)

Ø Loss after tax of £4 million (2012: profit £44 million) arising after net exceptional charges of £99 million (2012: £58 million) principally relating to property matters





Chief Executive Officer, Ted Tuppen to retire and Simon Townsend appointed new
Chief Executive Officer

Enterprise Inns plc ("ETI" or "the Company") today announces that Ted Tuppen will be retiring as Chief Executive on 6th February 2014 and is expected to leave the Company on 19th May 2014. He will be succeeded by Simon Townsend, currently Chief Operating Officer.

Ted has been Chief Executive of the Company for more than twenty years, having founded the business in 1991 before its listing on the London Stock Exchange in 1995. Throughout the last two decades, ETI has led the industry in offering an attractive and affordable model for pub ownership in the UK, supporting thousands of publicans to set up and run their own pub business. Under Ted's leadership, ETI has grown into the largest operator of leased and tenanted pubs in the UK, with a portfolio that comprises some 5,500 properties valued at £4 billion.

[jeffian] 22/10/2013 11:56

Keeps ticking up nicely in the run-up to the results due on 19/11. Results themselves unlikely to be great after the problems of the first half (weather and a major supplier going bust which interrupted their supply chain to their tenants). Big question will be, have they stopped falling like-for-like sales and returned to l-4-l growth in the final Quarter, as targeted? Also, what are the implications of the successful Bond placing? They are on the verge of eliminating bank debt and that will give them far more freedom about the way they run the business.

[skinny] 02/10/2013 07:32

Deutsche Bank Buy 151.00 151.00 190.00 205.00 Reiterates

[jeffian] 09/9/2013 09:07

Maybe the market will catch on how good a deal this is for ETI.

[skinny] 06/9/2013 09:23

Yes I read that - yesterday's movement did seem odd - I managed to buy back some that I sold @146.1 on Wednesday @141.8 yesterday.

[jeffian] 06/9/2013 09:18

From today's Telegraph market report -

"However, a £97m convertible bond offering from fellow mid-capper Enterprise Inns – that will help the pub group cut its borrowing costs – saw its shares decline 2½ to 143.4p. Buyers of convertibles typically take a short position on the bond issuer's shares to establish an arbitrage trade, which would weigh on share price of the group selling the debt and explain Enterprise's fall."

[jeffian] 05/9/2013 23:08

The more you think about it, the more this deal has to be a win/win for ETI, surely? I hadn't seen the conversion terms when I left this morning but I have now. So ETI all but eliminate their reliance on the banks and any covenants they may apply for their loans; they have reduced their borrowing costs and, in the event that conversion takes place at £1.9103, dilution seems to be modest (they would increase their shares in issue by around 10% but increase their NAV by around 7% taking their NAV/share from 286p to 278p, all other things being equal). I would have thought, if the market stops to think about it, the shares ought to get marked up as the implications sink in.

[skinny] 05/9/2013 13:11

Enterprise Inns plc Convertible Bond Offering

Enterprise Inns plc ("ETI") announces the final terms of an offering (the "Offering") of £97 million of senior, unsecured Guaranteed Convertible Bonds due 2020 (the "Bonds"), as announced earlier today.

The Bonds will be issued and redeemed at par, will have a maturity of seven years and bear a coupon of 3.50% per annum payable quarterly in arrear. The reference share price has been set at £1.4150 (the "Reference Share Price"), being the placing price of the concurrent accelerated secondary equity placing of ordinary shares of ETI. The initial conversion price has been set at £1.9103, a premium of 35% above the Reference Share Price.

The Bonds will be issued by Enterprise Funding Limited, a wholly-owned subsidiary of ETI incorporated in Jersey (the "Issuer"), and will be guaranteed by ETI.

Settlement is expected to take place on or about 10 September 2013.

[scburbs] 05/9/2013 13:07

Being able to borrow at 3.5% with the conversion right at close to TNAV looks like very good news to me (not still holding).

This is an example of QE achieving its aim of pushing people down the risk curve, i.e. even those with relatively high gearing are now able to access the markets for pretty cheap debt.

Those with lower gearing can access the market for ridiculously cheap debt. For instance this GPE issue of a couple of days ago provided 5 year convertible debt at 1% and bearing in mind GPE already trades at a premium to NAV a conversion price which is set over 50% above NAV!

"Great Portland Estates plc Convertible Bond Offering

Great Portland Estates plc ("GPE" or the "Company") announces the final terms of its offering (the "Offering") of £150 million of senior, unsecured Convertible Bonds due 2018 (the "Bonds"), announced earlier today. The Bonds will be issued by Great Portland Estates Capital (Jersey) Limited (the "Issuer") and guaranteed by the Company.

The Bonds will have a coupon of 1.0% per annum payable semi-annually in arrear and the initial conversion price has been set at £7.145 per share, representing a premium of 35% above the volume weighted average price of the Company's shares from launch to pricing."

[skinny] 05/9/2013 09:28

Numis Add 139.90 145.90 - 170.00 Reiterates

[jeffian] 05/9/2013 09:00

Slightly surprised at the market's reaction to the issue of the convertible bond. I would have thought it was a good thing, certainly from the point of view of getting the banks out of ETI's hair. Maybe it's the potential dilutive effect of the 'convertible' bit but I've got to dash out now and haven't had time to think that through. Laters!

[skinny] 09/8/2013 08:31

Deutsche Bank Buy 151.75 148.00 190.00 190.00 Reiterates

[skinny] 08/8/2013 09:38

Numis Add 140.05 - 160.00 Reiterates

[skinny] 08/8/2013 09:38

Operating performance

After a difficult first half of the year during which like-for-like net income declined by 4.2%, we have seen an improving trend in performance in the second half with like-for-like net income for the total estate down by 2.7% in the 18 weeks to 3 August 2013. Encouragingly, the first five weeks of our final quarter have seen like-for-like net income growth.

In the first half of the year our income was adversely impacted by some exceptionally poor winter weather alongside the cessation of trading of Waverley, our wines and spirits distributor. In the third quarter we have faced tough comparatives against the prior year due to the timing of Easter and the positive impact from the Euro 2012 football championship and the Queen's Diamond Jubilee celebrations.

After taking account of these unusual events we estimate that our underlying like-for-like net income in the first half was down by around 2% and has improved in the second half to date to be down by approximately 1%.

Key to sustaining our improved performance in like-for-like net income is the successful execution of our many operational activities. The rate of business failures continues to fall and we are making good progress with the roll out of new services to our publicans such as the deployment of free Wifi, the provision of improved food pricing and support and the availability of discounted Sky entertainment packages. We are also maintaining our investment in the estate including the completion of 656 exterior redecorations, many of which have been completed during June and July.