Enterprise Inns calls time on its doomed dividend

By DAILY MAIL REPORTER
Updated: 20:51 EST, 12 May 2009

Shared n pub group Enterprise Inns fell another 8 per cent as it announced the scrapping of its dividend in a bid to conserve cash and unveiled plans to sell as many as 700 of its pubs.

Creaking under the weight of £3.8billion of debts the cut to the payout, saving an annual £30million, is a drop in the ocean.

But it is symbolic of the firm's plight as it struggles in the grip of the worst recession in living memory.

Enterprise's CEO Ted Tuppen is under pressure to sell as many as 700 of the group's pubs

Boss Ted Tuppen is under pressure to release some of his landlords from the beer tie which obliges licencees to buy alcohol through Enterprise.

But he said he was providing struggling locals with £1.4million of aid a month to help them through the bad times.

And he reckons the campaign to abolish the tie is diverting attention from the other issues facing the industry, such as tax hikes.

Enterprise reported a £29million drop in first-half profits to £103million, as it was hit by the economic downturn. Shares closed 13p lower at 160p.