Enterprise Inns this morning reported an 11% drop in first half pre-tax profit, describing the trading environment as “tough” and likely to remain so for some time. Pre-tax profit for the six months to 31 March was £132m, with ebitda flat at £256m. Revenue was down 3.3% on the year to £438m. Ted Tuppen, the group’s chief executive, said: “These are solid results, reflecting the foundations of quality that the team has built over past years and the resilience of the leased and tenanted operating model.” Hubert Reid, the group’s chairman, added: “It would be unwise to predict trading conditions through the second half of the year but, whilst cautious, we remain confident in our strategy.” The results followed last week’s announcement by Enterprise that it was eligible to convert to a Real Estate Investment Trust, if it underwent an internal restructuring. The company said it was currently analysing the situation, ahead of making a decision over conversion. This analysis is expected to take several months. During the period the group invested £37m in its estate. It acquired 40 pubs, for £32m and disposed of 18 pubs and surplus land for £12m. At the end of the period the estate comprised 7,785 pubs. As previously announced, the current volatility of the financial markets caused the group to call off its planned £750m refinancing. Its next refinancing requirement is a £1bn syndicated debt facility, which expires in May 2011. During the period, Enterprise purchased 5.5 million shares for cancellation at a cost of £29m. Underlying net debt at 31 March was £3.73bn, including £91m of cash held within the business.