LONDON (Reuters UK) - Enterprise Inns (ETI), the country's second-biggest pubs group, reported a 12.6 percent decline in full-year pretax profit on Tuesday as sales were hit by a smoking ban and deterioration in consumer spending.
The group, which has 7,700 pubs, made a pretax profit before exceptional items of 263 million pounds in the year to Sept 30, compared with 301 million the previous year.
Forecasts ranged between 258 million and 270.8 million pounds, with the consensus standing at 263.7 million, according to a Reuters Estimates poll of 17 analysts.
Chief Executive Ted Tuppen described the results as solid in a "very difficult" year for the pub industry.
"The trading environment is tough and is likely to remain so during the coming year," he said.
A vicious economic downturn, last year's smoking ban, a hike in beer duty, poor summer weather, and cheap offers in supermarkets have all combined to encourage drinkers to stay at home, hitting pubs across Britain hard and accelerating the rate of closures.
"Our licensees have had to endure a serious deterioration in consumer spending and confidence brought about through rising costs and taxes, the virtual collapse of the banking system and a UK economy sliding further into recession," Enterprise said in a statement.
The group has maintained its final dividend at 10.4 pence, giving a total for the year of 16.2 pence, up 3.8 percent.
(Reporting by Matthew Scuffham)
