Up 130% over the last year.
Anyone else watching this one.

And again on an otherwise sh*te day.

Added to BULLISH TRENDING Charts On CHAR thread tonight.

Off too a positive start.

Interim Results.

Highlights

Ø EBITDA (pre-exceptional items) £168m (H1 2011: £179m)
Ø Like-for-like net income in substantive estate up 1.5% (H1 2011: down 1.5 %)
Ø Like-for-like net income in total estate down 1.6% (H1 2011: down 5.0%)
Ø £89m of disposal proceeds has contributed to a reduction in net debt to £2.9bn (H1 2011: £3.1 bn)
Ø Purchase and cancellation of £29m Unique A4 securitised bonds ahead of schedule; purchase and cancellation of additional £10m A4 and £2m A3 bonds since period end
Ø Appointment of Robert Walker as Chairman

Statutory results

Ø Profit before tax and exceptional items £64m (H1 2011: £74m)
Ø Profit before tax £64m (H1 2011: £61m)
Ø Adjusted earnings per share 9.6p (H1 2011: 10.8p)

Panmure Gordon Reiterates it's Buy TP 87p.

Numis Reiterates it's Buy TP 100p.

Peel Hunt Upgrades to Hold TP 70p.

Interim Management Statement

Highlights

· Continuation of improving trading trends, with like-for-like income per pub up 1.6% in the substantive estate.

· Like-for-like income in the total estate down by only 1.2% (down 5.1% in the same period last year and down 1.6% in the first half).

· Total proceeds from disposals of £148 million in the financial year to date.

· Bank borrowings net of cash reduced to £364 million (£446 million at 30 September 2011).

Enterprise Inns rises 7.7 percent, after the pubs operator posts higher income for the 18 weeks to Aug. 4.

"Given the improving trading trends and falling bank debt, we think the stock continues to offer significant upside potential," Panmure analysts write in a research note, keeping a "buy" rating on Enterprise Inns shares

Tempus is keener on Enterprise Inns, the pub company that has been struggling under a debt mountain. Some sensible disposals of non-performing pubs (as well as some very good ones) is beginning to get the financial house in order, while the Euro 2012 football and Diamond Jubilee both lifted the third quarter numbers. Tempus thinks Enterprise Inns has some way to go, buy.

Strong today on good volume.

And again today.

Enterprise Inns gained 4% today to hit a new 52-week high of 76.25p, although at the time of writing the price has dropped back a fraction to 75.5p. The shares have done remarkably well this year, having almost trebled from their January low point of 26.5p.

Although there is no resumption of dividends expected after they were canned in 2010, City forecasts put the shares on a P/E for the year to September of just 3.5. While August's interim update looked positive, the pub group still has very significant debts, but they are reducing.

From week ahead very bullish comment........

The same day will see preliminary results from Enterprise Inns (ETI).

Recent news: Like-for-like income in the total estate was down 1.2% for the 44 weeks to 4 August, implying a decline of just 0.6% in the last 18 weeks. Like-for-like income per pub in the substantive estate was up 1.6%, compared to 1.5% at the half-year. Year-to-date disposal proceeds stood at £148 million.

Analysts' expectations: Simon French, analyst at Panmure Gordon, is expecting trading in 2013 to remain "challenging", but believes the group should be able to stabilise like-for-like net income in the whole estate. He is predicting disposal proceeds of £150 million for 2013, with capital expenditure dropping to c. £50 million.

"Given the improving trading trends and falling bank debt - and the possibility of the reintroduction of dividends over the next 12 months - we think the stock continues to offer significant upside potential," states French, reiterating his 'buy' recommendation.

Valuation: The stock trades on a 2012 enterprise value (EV) to EBITDAR ratio of about nine times.

ETI ENTERPRISE INNS

Brokers with BUY recomendations on ETI

Date Company Name Broker Rec. Price Old target price New target price Notes

16 Nov Enterprise Inns PLC Morgan Stanley Equal weight 66.50 75.00 75.00 Reiterates
16 Nov Enterprise Inns PLC Numis Buy 66.50 110.00 110.00 Reiterates
16 Nov Enterprise Inns PLC Panmure Gordon Buy 66.50 87.00 87.00 Reiterates
15 Nov Enterprise Inns PLC Deutsche Bank Hold 66.50 105.00 105.00 Reiterates

ETI ENTERPRISE INNS

A forward P/E of just over 3
to 2013 Derd Cheap IMO.

Look at the NAV per share aswel.

Enterprise Inns PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
16-11-12 BUY 135.00 20.10 133.00 20.10
Numis Securities Ltd
14-11-12 BUY 136.70 20.40 135.30 20.50
Shore Capital
09-11-12 SELL 137.00 20.30 140.00 20.70
Peel Hunt
28-08-12 HOLD 136.92 20.37 132.58 19.99
Charles Stanley
25-05-12 BUY

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 136.83 20.37 133.97 20.33
1 Month Change -0.43 -0.05 -2.04 -0.09
3 Month Change -0.47 -0.06 -1.94 -0.09


GROWTH
2011 (A) 2012 (E) 2013 (E)
Norm. EPS -5.24% 39.31% -0.17%
DPS % % %

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £248.00m £338.44m £327.28m
EBIT £234.00m £m £m
Dividend Yield % % %
Dividend Cover x x x
PER 4.50x 3.23x 3.23x
PEG -0.86f 0.08f -18.82f
Net Asset Value PS 199.22p 300.00p 321.00p

Final Results

Highlights

Ø EBITDA* before exceptional items £340m (2011: £366m)
Ø Improving performance trends across the whole estate, with like-for-like net income down 1.2% (2011: 4.3% down)
Ø Like-for-like net income growth of 2.2% where publicans have been in occupation for over one year
Ø £208m net proceeds from disposals and our sale and leaseback programme
Ø Strong cash generation has reduced net debt by £266m to £2.7bn (2011: £3.0bn)
Ø New forward start bank facility of £220m commencing on expiration of existing facilities has extended the availability of bank financing to 15 June 2016

Statutory results

Ø Profit before tax and exceptional items £137m (2011: £157m)

Ø Profit after tax £44m (2011: £24m)

Ø Adjusted earnings per share# 20.5p (2011: 23.4p)



* Earnings before interest, tax, depreciation and amortisation
# Excludes exceptional items

ETI ENTERPRISE INNS

Excelent results and beats
concencous figure expected below.....

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Consensus 136.83 20.37 133.97 20.33
1 Month Change -0.43 -0.05 -2.04 -0.09
3 Month Change -0.47 -0.06 -1.94 -0.09

Hemscott premium



Statutory results



Ø Profit before tax and exceptional items £137m (2011: £157m)

Ø Profit after tax £44m (2011: £24m)

Ø Adjusted earnings per share# 20.5p (2011: 23.4p)


Highlights



Ø EBITDA* before exceptional items £340m (2011: £366m)

Ø Improving performance trends across the whole estate, with like-for-like net income down 1.2% (2011: 4.3% down)

Ø Like-for-like net income growth of 2.2% where publicans have been in occupation for over one year

Ø £208m net proceeds from disposals and our sale and leaseback programme

Ø Strong cash generation has reduced net debt by £266m to £2.7bn (2011: £3.0bn)

Ø New forward start bank facility of £220m commencing on expiration of existing facilities has extended the availability of bank financing to 15 June 2016


http://www.investegate.co.uk/enterprise-inns-plc-(eti)/rns/final-results/201211200700095074R/

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.





We intend to issue an Interim Management Statement on 31 January 2013.

ETI ENTERPRISE INNS

THIS LOOKS LIKE A SIGNIFICANT
POLICY CHANGE................

FOCUSING THE BUSINESS ON GROWTH



In order to secure the path to earnings growth, our operational teams are focusing on four key differentiating activities: enhancing the quality of the estate; attracting and retaining the right publicans; providing exceptional local support and selling in smarter ways to optimise income.



Enhancing the quality of the estate



Sometimes changes in the local market conditions for a particular pub can be so severe that even the best publicans cannot generate a sustainable level of return. In such circumstances the appropriate outcome is to work with the publican to identify alternative opportunities for them whilst our Property team work to optimise the alternate use value of the asset. This churn removes the unsustainable element of the estate and generates cash proceeds from disposal that can be used to repay debt or invested in the core retained assets to optimise their income potential.



Over the next three years we expect the estate to reduce to approximately 5,200 pubs. Over the same period we plan to maintain our level of investment and spend approximately £180 million to improve the quality of our estate. In the recent past, a significant proportion of our capital expenditure has of necessity been defensive in nature ensuring basic functionality is in place to enable a continuation of trade. Looking forward we plan to direct an increasing proportion of our capital expenditure on growth driving activities, where appropriate repositioning pub businesses to meet the changing needs of their local customer base.



Attracting and retaining the right publicans to the Enterprise offer



Identifying, recruiting and supporting well-funded, quality publicans are critical success criteria for our organisation and we plan to reinvigorate the current suite of agreements that we offer. Quality pubs, together with attractive and flexible agreements, will attract the best talent and allow entrepreneurialism to flourish within the pub industry. We have many highly successful pubs and publicans, frequently acknowledged for their quality and contribution to their communities. For example, in 2012, the Royal Oak Inn in Appleby-in-Westmoreland was recognised as the UK's Best Leased and Tenanted pub in the annual Great British Pub Awards.



A change of publican can be the catalyst for revitalising and securing the prospects of a pub. A seamless transition from one publican to another is always the preferred outcome for publicans, their customers and ourselves. However, in recent market conditions this outcome has sometimes been difficult to achieve. Even the best publicans may need our support to tackle the multiple challenges of declining consumer confidence, increased overhead costs, the burden of punitive increases in taxation and the high cost of regulation. In an attempt to prevent outright failure we have therefore continued to provide temporary concessions to publicans where appropriate, and have seen this cost reduce from £15 million last year to £6 million in 2012. Some of this reduction has been embedded in amended terms for good publicans because we acknowledge the permanent nature of changes in the market within which they operate. However we have also removed concessions where it is clear that a change of publican is the best outcome for the trading prospects of the pub.



Another cost associated with business failure is the bad debt that may arise on the departure of the publican. It is reassuring that the underlying cost of bad debt in the year has reduced to £1.3 million (2011: £1.5 million), with the level of overdue balances also down to £4.0 million (2011: £5.0 million), representing only 0.6% of turnover.



Our approach to the tie has continued to evolve, and free-of-tie options for bottled beers, ciders and flavoured alcoholic beverages ("FABs"), wines, spirits and minerals, gaming machines and guest ales are available in every new agreement. Where circumstances have been compelling to both parties, we have been able to agree completely free-of-tie terms. This suite of available options ensures that all publicans' needs can be met, whether at the time of a new agreement, or in order to sustain and evolve an existing relationship.



Our evolution of the traditional pub tenancy agreement, developed and trialled successfully as part of Project Beacon, has been further extended during the year. A greater level of direction and support from us provides both experienced and inexperienced self-employed publicans with the opportunity to work with us in a new and innovative way. Our comprehensive support packages include flexible start-up arrangements, industry-leading training, upweighted marketing support and strong financial discipline. Our regional managers provide commercial insight and work in partnership with the publican to develop the most appropriate retail proposition to compete sustainably in the local market place.



We have increased the number of outlets operating under the Beacon format to 254 (2011: 90) and are encouraged by their results. They are typically smaller, wet-led pubs with an average net income of around £35,000 but which have delivered significantly improved net income when compared to the three months prior to conversion. Aligned with our successful disposal programme, we believe there is a natural limit to the number of our pubs that would benefit from this particular product offer and method of operation and now anticipate a total population of around 300 pubs to operate to this format. We are extending the lessons learnt from Beacon to develop other concepts where food, sport or family are the more central elements of the pub offer, and we already have one trial site successfully operating a carvery concept.



Selling smarter



Our Commercial team, under the guidance of our new commercial director, has developed our thinking to optimise income by selling in smarter ways through our product offer, our pub offer and our service offer.



· Product offer



Development of our product offer will include initiatives to extract greater value from the increasing importance of food, entertainment and technology to the appeal of our pubs in their local markets. We are progressing our e-commerce plans to enable online order capture which will enhance our capability in product up-selling and tele-marketing. Key to the development of the product offer is our relationship with suppliers which continues to be strong. We will work with our suppliers to identify margin growth opportunities and target product mix and innovations that bring benefits to our publicans and to our income.



· Pub offer



Alongside our product offer we already provide an extensive range of marketing support activity to our publicans to allow them to service the demands of their customers and to compete effectively in their chosen market. For example, in cask ale, which now represents 19% of all beer sales volumes, we source 1,520 brands from 457 brewers, including 437 members of SIBA, who deliver their products directly to participating pubs, maintaining important relationships between local producer and publican and enabling our pubs to differentiate their drinks range from their competitors. We are implementing quarterly marketing campaigns that are events-led and category focussed which are supported by comprehensive marketing materials, the resources of our partner suppliers and of course our own regional teams.



· Service offer



Our training solutions have recently been enhanced to include a "Building your Business" programme which is designed to enable existing and new publicans to improve footfall and spend per head. Further training was provided in such areas as social networking and media marketing skills as well as more traditional business management activities.



We provide a wide variety of support packages to ETI publicans enabling them to secure essential services which are both cost-effective and legally compliant. Our Health & Safety Management Solution, heating, cellar cooling and boiler maintenance packages have now been taken up by thousands of publicans at a cost materially less than would be available in the open market. We continue to utilise our purchasing leverage and organisational capabilities to access beneficial purchasing terms for dry goods, consumables, utilities and other merchant services, securing significant savings for our publicans.



During the year we concluded a trial of Vianet iDraught bar management systems in our pubs, providing real benefits to publicans in controlling pouring yields, beer quality and cost management. We have subsequently made around 450 installations of the iDraught system into our estate in the year, alongside which we are also increasing the provision of EPOS Smart Till systems, where appropriate.



Exceptional local support



Our regional managers are at the core of the commercial relationship between us and our publicans and during 2012 we have invested in additional resource to enable these teams to spend more time directly engaging with our publicans in order to understand their needs and to help provide business building solutions.



At a time when the role of great publicans at the heart of their community has never been so important, we also set out to recognise the many publicans who add so much more to their communities than simply serving quality food and drink. We are investing £1 million over the next ten years to fund our Community Hero Awards which have been established to celebrate the contribution of publicans who have such an impact on the fabric and cohesion of their communities. From the many deserving nominations throughout our estate, 18 regional awards were made, and the national award for 2012 was presented to our publicans at The Hare Inn in Leighton Buzzard, who proved to be community heroes in so many different ways, organising local events to benefit veterans and the homeless, and inviting local teams, clubs, committees and other groups to use the pub as a regular meeting place.

edit.