Enterprise Inns, the leased and tenanted pub company, has reported a 10.3% fall in pre-tax profit in the year to 30 September 2011 but said it has made “good progress” in stabilising its operational performance, with average net income per pub up 1% on 2010. Enterprise Inns has also announced today that its chairman Hubert Reid is to retire, with a successor to be appointed at its AGM on 9 February 2012. Profit before tax and exceptional items for the company was £157m (2010: £175m), with profit after tax down £2m to £24m and operating profit at £352m (2010: £387m). Revenues fell 6.2% to £711m. Adjusted earnings per share was 23.4p (2010: 25.9p), and ebitda before exceptional items was £366m (2010: £405m). The company, which ran 6,289 sites at the year end, said its highlights included average net income per pub increasing from £64.2k to £65.6k, while 90% if its estate was let on substantive agreements, up from 89% on 2010. Average net income per pub increased 2% in H2, with no change in H1. However, like-for-like net income in the substantive estate fell 1.7%; in 2010, the figure fell 2.3%. Across the whole estate, average net incomes fell 4% (2010: fall of 5%). Enterprise disposed of 466 non-core pubs during the year, generating net proceeds of £106m, while the sale and leaseback programme generated £132m from 105 pubs, at an average rental yield of 6.6%. Total disposal proceeds from the coming year may exceed £150m, Enterprise said. The company, which is led by Ted Tuppen, also announced that it would be expanding its Project Beacon ‘managed tenancy’ agreement from 90 to 300 sites over the coming year, and would also look to develop franchise-style agreements. “[Project Beacon] involves a much higher level of proactive engagement between the ETI team and the publican, covering areas such as product selection, pricing, retail standards, management information and marketing and has helped to develop our thinking beyond the traditional leased and tenanted proposition.” The firm added: “In addition to the roll out of further Beacon concepts, we are now in a position to consider franchise-style agreements and to develop other concepts where our focus would be on the many opportunities to further develop the food offering across our pub estate.” Tuppen said: “At the start of the year we set ourselves the task of stabilising the operational performance of the business whilst continuing to reduce our exposure to the banking market. We have made good progress on both fronts. The performance of our substantive estate, which makes up 90% of our estate by number, 95% by income, has continued to improve and we have reduced net debt by £302m. “Strong cash flows from disposals and operating activities have helped to significantly reduce bank borrowings during the year and we will continue to reduce our exposure to the volatility of the banking market by bringing forward a review of our existing banking facilities to secure appropriate bank funding for the future. “In addition, we are reviewing how we can ensure that the income potential from every outlet is maximised including identification of additional opportunities to realise proceeds in excess of book value through disposal or alternative use, where appropriate. “Whilst trading conditions are likely to remain challenging, we expect that the quality of our pub estate and the resilience of our publicans will ensure that the like-for-like performance in the substantive estate continues to improve. As we return the business towards growth, we remain committed to our initiatives and our strategy and confident that in the medium term we will be in a good position to deliver positive returns to shareholders.” Tuppen labeled Reid, who is to retire after 15 years as chairman, as "an excellent chairman whose leadership of the board and wise advice has helped to guide the business through a period of rapid growth through acquisition followed by more challenging trading and regulatory times".