Enterprise Inns plc Annual Report and Accounts 2003
Enterprise Inns plc
3 Monkspath Hall Road, Solihull, West Midlands, B90 4SJ
Tel: +44 (0)121 733 7700
Fax: +44 (0)121 733 6447
www.enterpriseinns.com
Enterprise Inns plc
Annual Report and Accounts 2003 Financial Highlights 1
Directors and Advisers 2
Chairman’s Statement 3
Chief Executive’s Review 4
Finance Director’s Report 9
Directors’ Report 12
Corporate Governance 16
Report on Directors’ Remuneration 18
Group Profit and Loss Account 25
Group Statement of Total Recognised Gains And Losses 26
Note of Historical Cost Profits and Losses 26
Group Balance Sheet 27
Balance Sheet 28
Group Statement of Cash Flows 29
Notes to the Accounts 30
Report of the Auditors 50
Five Year Record 51
Analysis of Shareholders 52
Financial Calendar 52
Notice of Meeting 53
Explanatory Notes to the Notice of AGM 56
Form of Proxy 59
Contents
The quality and potential
of the company’s estate is
proving to be increasingly
attractive to multiple
operators and entrepreneurs.
The Enterprise Inns Team
Epic Bar & Brasserie, Bromsgrove
Originally a branded managed house, the renamed Epic Bar and
Brasserie was selected by Michelin starred chef and proprietor Pat
MacDonald to add to his highly successful Epicurean restaurant and
consulting business. A £200,000 joint investment programme in the
fabric and design of the premises followed and the Epic is now setting
new standards in food retailing.
Builders Arms, London
Award winning Geronimo Inns, established by Rupert and
Jo Cleveley in 1999, is one of London’s most successful
pub operators and now has fifteen outlets throughout
London and the south east. The Builders Arms, in the
heart of Chelsea, is renowned for the quality of its food
and drink, the highly professional staff and its smart and
comfortable surroundings.
Elgin Bar & Grill, London
In a project lasting just two weeks, and with an investment of almost £200,000, Triumph Pubs and Bars have
completely transformed this former managed house. Locals can now enjoy a high quality, yet down to earth, pub
experience in stunning surroundings. A second phase development for the first floor is planned in the near future.
The Stansfield Arms, Apperley Bridge
Multiple lessee Gardener Taverns operates three highly
successful food-led pubs with Enterprise. A recent
refurbishment at the Stansfield Arms has transformed the
outlet into the epitome of a traditional countryside
Yorkshire pub. At the heart of a popular tourist area, its
external appearance has been a key element in
attracting new business.
Epic Bar & Brasserie
Builders Arms The Stansfield Arms
Elgin Bar & Grill
The White Hart, Winchombe
A former 16th Century coaching inn run by the Burr family, the
White Hart has a unique Swedish character throughout, including
the specially imported furniture in the letting bedrooms. Situated
in a popular Cotswold village, The White Hart has recently received
many accolades including the Les Routiers Inn Of The Year 2003.
Left to right: Andrew Clifford, Strategic Planning and Investment Manager; 
David George, Finance Director; Ted Tuppen, Chief Executive; 
Simon Townsend, Customer Services Director; Gordon Harrison,
Operations Director.
The Fulham Mitre, London
The Fulham Mitre, in the heart of residential Fulham has
recently been refurbished with an investment of almost
£450,000 by lessees James Wheatcroft, Nigel Davies and
Louis and David Amato. This former managed house is now
being run by Louis and his family, and has quickly become a
favourite amongst local residents.
Double Barrel, Cheltenham
A £40,000 development programme has helped
the licensees of the Double Barrel re-establish
the pub at the heart of its local community. This
award winning pub has been recognised by the
Britain in Bloom campaign for its fundraising
achievements.
Double Barrel
The company and our licencees have continued to invest in a
wide range of development opportunities to realise the full
potential of our pubs.
The Fulham Mitre
The White Hart
before
after Enterprise Inns Annual Report 2003 1
Financial Highlights
 Average operating profit per pub in the core estate increased by 8% in the year.
 Cash generated after payments in respect of interest, tax, dividends and capital expenditure amounted
to £119 million which represented an increase of 95% on the previous year.
 Total debt at year end was £1,395 million, 99% of which is fixed at a weighted average interest rate of
6.9% for an average life of almost 16 years.
 The quality of the pub estate has been improved through the acquisition of 34 individual pubs at a cost
of £16 million, the disposal of 213 pubs generating proceeds of £41 million, and £22 million of capital
expenditure invested in the year.
 At 30 September 2003 the estate comprised 5,087 leased and tenanted pubs, a decrease of 179 pubs in
the year. The value of the estate rose to £2.5 billion. 
2003 2002 Increase 
Operating profit before exceptional items £293.2m £204.0m 44%
Profit before tax and exceptional items £173.2m £114.5m 51%
Adjusted earnings per share* 72.3p 59.0p† 23%
Dividends 17.1p 14.1p 21%
* excludes exceptional items, goodwill amortisation and a one-off tax credit in 2003.
† restated to exclude goodwill amortisation. Enterprise Inns Annual Report 2003 2
Directors and Advisers
Secretary
D C George
Auditors
Ernst & Young LLP, One Colmore Row, 
Birmingham, B3 2DB
Bankers
Bank of Scotland, 124 Colmore Row, 
Birmingham, B3 4AU
Financial Adviser
HSBC Bank plc, Level 18,
8 Canada Square, London, E14 5HQ
Stockbrokers 
HSBC Bank plc, Level 18, 
8 Canada Square, London, E14 5HQ
Deutsche Bank AG London, Winchester House, 
1 Great Winchester Street, London, EC2N 2DB
Registrar
Computershare Investor Services PLC, 
PO Box 859, The Pavilions, Bridgwater Road, 
Bristol, BS99 1XZ
Solicitors
CMS Cameron McKenna, Mitre House, 
160 Aldersgate Street, London, EC1A 4DD
Registered Office
3 Monkspath Hall Road, Solihull, 
West Midlands, B90 4SJ
Company number
2562808
H V REID* 
Chairman
Appointed to the Board 21/01/1997
Hubert Reid, 63, is chairman of the Royal London Mutual
Insurance Society Limited, deputy chairman of Majedie
Investments PLC and a non-executive director of the
Taverners Trust PLC and Michael Page International plc. He
was previously managing director and then chairman of the
Boddington Group plc and chairman of Ibstock Plc and
Bryant Group plc.
G E TUPPEN 
Chief Executive
Appointed to the Board 22/02/1991
Ted Tuppen, 51, led the management buy-in which resulted
in the formation of the Company in 1991. He is a chartered
accountant and was in practice until 1980 with KPMG in
London, North America and Europe. He then qualified with
an MBA from the Cranfield School of Management before
becoming managing director of a privately owned
international engineering company where he worked until
1989. He has also worked in, and acted as a consultant to, a
variety of businesses. He is chairman of the Pub and Leisure
Group at the British Beer and Pubs Association and a
director of The Unique Pub Company Limited. 
M F GARNER*
Non-Executive Director and Senior Independent
Director
Appointed to the Board 29/09/1995
Michael Garner, 66, is a non-executive director of C & J
Clark Limited and Gyrus plc. He was a member of the
Accounting Standards Board from 1990 to 1995 and was
finance director of TI Group PLC until 1993.
A J STEWART*
Non-Executive Director
Appointed to the Board 29/05/2001
Jo Stewart, 54, is a fellow of the Institute of Grocery
Distribution. He has over 30 years of experience in the food
industry, was managing director of Pizzaland International and
chief executive of Northern Foods plc until September 2003.
D A HARDING*
Non-Executive Director
Appointed to the Board 06/11/2003
David Harding, 56, is deputy chairman (non-executive) of
Coventry Building Society. He was previously finance director of
Railtrack Group plc and group chief executive of the parent
company RTG plc until 2002. He was also group finance director
of Rugby Group plc and T&N plc. He is a fellow of the Institute
of Chartered Management Accountants.
D C GEORGE 
Finance Director
Appointed to the Board 08/07/1991
David George, 52, joined the Company on its formation as
part of the management buy-in team. A qualified
accountant, he spent ten years in industry including six
years at Massey Ferguson Manufacturing Limited. He then
spent ten years with Grand Metropolitan Brewing Limited in
various finance roles, including finance director of The
Manns and Norwich Brewery Company Limited and
subsequently as finance director of the production division
of Grand Metropolitan Brewing. 
G W HARRISON 
Operations Director
Appointed to the Board 23/10/1994
Gordon Harrison, 46, joined the Company on its formation and
was appointed to the Board in October 1994. He has 24 years’
licensed trade experience specialising in tenanted operations
and retail management with Watney Mann Truman Brewers
Ltd, the Greenalls Group plc and the Vaux Group plc. He is
responsible for the operation of the pub estate.
W S TOWNSEND 
Customer Services Director
Appointed to the Board 01/10/2000
Simon Townsend, 41, joined the Company in February 1999,
and was appointed to the Board in October 2000. He has
worked for 16 years in the pub and leisure industry,
previously with Whitbread plc, Allied Domecq, Rank Group,
Marston, Thompson & Eversheds. He is responsible for the
provision of all support services to the Enterprise estate. 
* Member of the Audit and Remuneration Committees Enterprise Inns Annual Report 2003 3
Chairman’s Statement
am delighted to report on our results for the year to 30 September 2003 which benefited from growth in our
core estate and from the contributions made by our major investments in 2002. In March 2002 the 
Company invested £75 million to acquire a 16.8% share in the Unique Pub Company Limited (Unique) and in
May 2002 the Company acquired an estate of 1,860 pubs from Laurel Pub Holdings (Laurel) for a total
consideration of £881 million.
Total operating profit before exceptional items increased by 44% to £293.2 million and profit before tax and
exceptional items rose by 51% to £173.2 million. Interest cover was 2.8 times excluding the contribution from
Unique. Cash generated after payments in respect of interest, tax, dividends and capital expenditure amounted
to £119 million which, together with proceeds from the sale of pubs, facilitated the repayment of £135.5
million of borrowings in the year. Total debt at the year end was £1.395 billion, 99% of which is fixed at a
weighted average interest rate of 6.9% for an average life of almost 16 years.
Unique continued to perform in line with expectations, achieving an operating profit before exceptional items
approaching £230 million.
Adjusted earnings per share which has been calculated excluding exceptional items, goodwill amortisation and a
one-off tax credit in 2003, following settlement of prior years’ tax computations, increased by 23% to 72.3 pence.
The directors are recommending a final dividend of 11.4 pence per share, making a total for the year of 17.1
pence per share, an increase of 21% over the prior year. This increase is closely aligned to earnings growth
which the directors believe is appropriate given the Company’s strong and stable cash flows. The total dividend
will be covered 4.3 times and will be payable on 26 January 2004, subject to shareholder approval.
Average operating profit per pub increased by 8% over the prior year in the core estate which averaged 3,324
pubs in the period. The core estate excludes Laurel, acquired in May 2002, which has contributed just over £91
million of operating profit in the year.
On 3 March 2003 the Company issued £250 million of secured bonds with interest payable at 6.5% per annum
until redemption in December 2018. Following strong investor demand, this issue was subsequently increased
in October 2003 by £350 million to a total issue of £600 million. Total long-term debt issued by the Company
over recent years now amounts to £1,185 million.
These strong results, and those of our associate Unique, have been delivered in a testing economic
environment and reflect our continuing success in developing a high quality leased and tenanted pub estate.
Enterprise’s commitment to charging fair rents and to providing a full range of leading national, regional and
local brands continues to attract and motivate top quality licensees, who are the key to our long-term success.
We thank them and all our staff for their contributions.
Earlier this month we announced the appointment of David Harding as an independent non-executive director of
the Company. He brings with him a wealth of financial and management experience and will succeed Michael
Garner as Chairman of the Company’s Audit Committee during the current financial year ending September 2004.
The Company’s estate and its investment in Unique provide many opportunities for profitable growth and we
look forward to another year of solid progress.
Hubert Reid
Chairman
I Enterprise Inns Annual Report 2003 4
Chief Executive’s Review
Results
The year to 30 September 2003 has seen Enterprise Inns plc (Enterprise) consolidate its position as the leading
operator of leased and tenanted pubs in the UK. Total operating profit before exceptional items has increased
by 44% to £293.2 million, driven by like-for-like growth of 8% in the core estate and further enhanced by the
effective integration of the Laurel acquisition made in 2002. 
Adjusted earnings per share increased by 23% to 72.3 pence.
1998 1999 2000 2001 2002 2003
80
70
60
50
40
30
20  
10
0
300
280
260
240
220
200
180
160
140
120
100
80
60
40  
20
0
33.1
52.6
75.6
104.7
204.0
293.2
Adjusted EPS (pence)
Operating Profit before exceptional items (£m)
16.1
19.0
31.5
39.5
59.0
72.3 Enterprise Inns Annual Report 2003 5
Our focus on consolidation and cash generation during 2003 has seen Enterprise relatively subdued in the
market for individual pub acquisitions. Some pubs were, however, just too good to miss and we purchased 34
top quality outlets for £16 million. These pubs are already achieving an average income return on investment
in excess of 13%.
Our commitment to improving the overall quality of the estate has, however, seen aggressive pruning of under-
performing and high value alternative use outlets, with a total of 213 pubs and surplus land sold for net
proceeds of £41 million. This disposal programme included the 60 pubs sold in order to comply with the
undertakings we gave to the Office of Fair Trading following our acquisition of the Laurel estate in 2002. 
Reflecting our commitment, alongside licensees, to invest in and improve the quality of our pubs, it is no
surprise that the independent valuation carried out by Humberts Leisure shows once again a substantial
increase in the underlying value of our estate. At 30 September 2003, the estate comprised 5,087 pubs
throughout the UK valued at £2.5 billion, including a current year revaluation surplus of £283 million. The
average value per outlet increased by 16% during the year to £490,000. The valuation excludes any lotting
premium which, we are advised by our independent valuers, would be in the region of 10%.
Leases and tenancies
Before the Beer Orders in 1989, 30,700 leased and tenanted pubs were in the hands of the national, regional
and family brewers. Tenancies in those days were characterised by strong ties to the brewery owner, with the
inevitable restriction of consumer choice.
The decline of brewery ownership and the development of pub companies over the past decade has resulted in
many benefits for licensees and consumers alike.
1998 1999 2000 2001 2002 2003
50
40
30
20  
10
0
Average operating profit per pub (£’000)
23.4
26.8
30.4
37.0
46.0
49.3
£’000
Estate management
In a year of consolidation, with no major corporate acquisitions, we have continued to invest alongside
licensees, spending more than £27 million on maintaining and improving the quality and potential of our
estate. Although it is impossible to calculate how much has been invested in our outlets by licensees
themselves, we estimate that, in the past year, this figure has been in excess of £40 million. This combined
expenditure is proving to be highly effective and has both helped maintain and improve the condition of our
pubs, at the same time increasing average operating profit per pub to £49,300.
Chief Executive’s Review Enterprise Inns Annual Report 2003 6
Chief Executive’s Review 
A low cost business opportunity
A lease or tenancy represents a low-cost opportunity for entrepreneurial licensees to run their own businesses.
Not only is the initial cost of entry substantially lower than buying a free house, but the ongoing costs of
ownership are very fair. The average Enterprise rent, net of discounts given, of £22,750 represents a rental
cost of just 4.6% against the average value of the pubs in our estate. It is of course the case that a true free
house operator (not necessarily one tied by loans to a particular brewer) could purchase beer and cider in the
open market at prices less than those charged by Enterprise. However, even allowing for an estimate of the
market discount forgone, the total deemed rental cost to the licensee is still just £36,000, or 7.3% of
freehold value.
Recognising the vital importance of attracting good quality licensees, Enterprise has led the way in developing
a range of user-friendly agreements, abandoning the unrealistic requirements of privity of contract and
upwards-only rent reviews. Our Retailers in Partnership philosophy in our dealings with licensees recognises
and promotes co-operation, respect and the pursuit of mutual profitability. We are pleased to report that we
currently have more than 800 fully funded and screened applicants on our database, looking to take a pub with
Enterprise. This record figure is more than three times the number of pubs we have available for let and reflects
the attractive business opportunity that taking a pub lease represents, especially with Enterprise.
Consumer choice
As major wholesalers and distributors of beer and other wet products, we are able to secure for our licensees a
wide range of products, including some 380 beers and 35 ciders. 
Cask ale now represents 14% of our total beer sales, against a declining national average of around 8%. Working
closely with our supplying brewers, we now offer our licensees an unrivalled choice of more than 110 cask ale
brands available on a permanent basis from 47 brewers, and a further 120 guest cask ales which are made
available at different times throughout the year, supplied predominantly from small and regional breweries.
It is worthy of note that in the 837 former Scottish & Newcastle and Whitbread managed houses which we
purchased in May 2001, we have facilitated the introduction of cask ales supplied by small and regional
breweries. These cask ales have now grown to represent 13% of total ale sales in these estates. 
Whilst this commitment to a wide range of products reduces the average level of wholesale margin that we
can achieve across our estate, we consider that this is a worthwhile investment in the long-term quality and
potential of our pubs.
Licensee profitability
Following some high profile failures in the branded managed house sector, most notably in high street
locations, questions are sometimes raised about the profitability of pubs in general and tenants and lessees in
particular.
Whilst Enterprise does not have direct access to the detailed financial statements of individual licensees, we
have been able to analyse the theoretical “fair maintainable trade” profit and loss accounts which are produced
for each pub, providing the basis for business development reviews and rental negotiations. These have been
independently verified by professional valuers.
The results are encouraging, showing that the average individual Enterprise licensee is likely to be earning a profit
before tax of around £37,000, including an allowance of £8,000 for free living accommodation and essential
amenities. Just 167 pubs in our estate have earnings potential of less than £15,000 and the majority of these
outlets are on our list of planned disposals. However, 165 licensees are likely to be earning in excess of £75,000
per year and, most encouragingly, 63% of our outlets have potential earnings of more than £30,000 per annum. Based upon regular contact between Regional Managers and our licensees, we are confident that, on average,
pub performance is in line with expectations and improving. There will of course be some licensees who are
falling short of their own expectations and there are without doubt some pubs which are massively over-
performing thanks to the excellence of their licensees.
Statistically, we can take comfort from certain key performance indicators:
 Almost 93% of our pubs are let on substantive leases and tenancies.
 Bad debt costs for the year were just 0.3% of sales turnover, down from 0.4% last year.
 Rent concessions given at 30 September 2003 amounted to just £650,000, only 0.5% of the rent-roll
and down from £775,000 at the same time last year.
 Over the past year we have completed 718 rent reviews, with just two going through any form of
independent arbitration process before being agreed.
 Dilapidations claims issued to departing licensees amounted to below £1.0 million during the year, with
80% of the remedial work being completed by the licensees themselves, confirming that our licensees
are able to comply with their repairing obligations and keep the pubs in good order.
Hence we believe that our existing lease and tenancy terms are fair and provide significant opportunities for
good quality licensees to develop and grow profitable businesses.
Unique Pub Company
In March 2002, working alongside a consortium of venture capitalists, we created a special purpose vehicle to
acquire the Unique and Voyager estates of some 4,200 pubs. In September 2002, the Unique and Voyager estates
were combined into The Unique Pub Company and the level of securitised debt in the combined business was
increased to £1.80 billion, with a further issue of up to £170 million approved in principle by the bondholders.
During the year to 30 September 2003, Unique continued to perform in line with expectations, achieving an
operating profit before exceptional items approaching £230 million.
The entire Voyager estate has now been converted from managed houses to some form of lease or tenancy
agreement and at 30 September 2003 over 95% of the combined estate of 4,056 outlets has been let on
long-term substantive agreements. 
Enterprise Inns Annual Report 2003 7
< £15,000 £15 – £30,000 £30 – £45,000 £45 – £60,000 £60 – £75,000 >£75,000
£11,000* £24,000* £37,000* £51,000* £66,000* £96,000*
2000
1500
1000
500  
0
Licensee Profit within bands
167
1685
1860
888
271
165
No. of pubs
* average profit per pub within each band
Chief Executive’s Review  Chief Executive’s Review 
Enterprise Inns Annual Report 2003 8
Despite spending some £28 million on capital improvements to the pub estate, Unique was able during the
year to increase cash reserves by £26.7 million and repay £61.8 million of securitised bonds, where repayments
are currently £52.6 million ahead of schedule. The balance of securitised debt at 30 September 2003 stands at
£1.74 billion and the company believes that it is on track to meet the criteria that will allow the further issue
of up to £170 million of bonds during 2004.
Enterprise has a fixed price call option to acquire, from the venture capital consortium, the balance of 83.2% of
the equity that Enterprise does not already own. This option may be exercised at any time between January and
November 2004 at a price which is fixed at £608 million up to 31 March 2004 and which increases slightly
over time thereafter.
Following a year of strong cash generation both within Enterprise and Unique, further helped by successful
bond issues, our discussions with several major banks have indicated that, should we decide to exercise the
option during 2004 and subject to market conditions remaining favourable, it may well be possible to raise the
funds required without recourse to the equity market.
Legislative background
The licensed trade is faced with some uncertainty as the new Licensing Act 2003 becomes a reality during
2004/5. On balance, this change in legislation offers a tremendous opportunity for well-run pubs in the hands
of responsible licensees to improve the profitability and potential of their businesses.
With law and order high on the Government’s agenda and binge drinking in the headlines, there should be no
place in the industry for irresponsible low pricing and promotions. This is the time when the pub industry must
demonstrate that a well-run pub represents a controlled environment able to promote responsible, sociable
drinking, more often than not accompanied by great food and entertainment. 
Equally, the pub industry must take the lead with the issue of smoking. Self-regulated, with proper provision for
smokers and non-smokers alike, plus effective protection for members of staff, there should be no need for a
total ban on smoking in public places which would be as unwelcome as it would be unnecessary.
I am pleased that in all of these key areas the industry, acting through its trade associations, is proactively
working with Government to try and ensure that sensible conclusions are reached.
Conclusion
This has been another successful year for Enterprise, consolidating the high quality acquisitions that we have
made in previous years and demonstrating our ability, alongside our licensees, to grow earnings in a highly
competitive and regulated market.
The key to future success lies in the quality of our pub estate and the profitability of our licensees. In this
regard, we have demonstrated during the year not only that the quality and value of our pub estate has
continued to grow but also that the vast majority of our licensees are able to make good returns for their
efforts and investment.
The head office and field-based teams at Enterprise continue to perform above expectations, enthusiastically
taking on leading edge technology across the whole business, enabling us to achieve our goal of providing top
quality support to our pub estate in the most efficient and cost-effective way possible.
We have again demonstrated our ability to deliver increasing returns to shareholders through appropriate
operating disciplines and steady growth in the core business, enhanced by the effective use of the strong cash
flows that the business generates.
The new financial year has started well and the team looks forward with confidence to another exciting year of
continued success and long-term growth in returns for shareholders.
TED TUPPEN
Chief Executive Enterprise Inns Annual Report 2003 9
Finance Director’s Report
Profit for the year
Total Group operating profit before exceptional items increased by 44% to £293.2 million and profit before tax
and exceptional items increased by 51% to £173.2 million. The results included full year contributions from the
acquisitions in 2002 of Laurel and Unique.
A summary of the Group Profit and Loss Account for the year to 30 September 2003 compared with the prior
year is as follows:
Year ended 30 September
2003 2002
Share of Share of
Continuing Unique Continuing Unique
Operations (associate) Total Operations (associate) Total Increase
£m £m £m £m £m £m %
Turnover 480.6 – 480.6 368.9 – 368.9 30
Group operating profit 254.2 39.0 293.2 187.2 16.8 204.0 44
Net interest payable (92.0) (28.0) (120.0) (75.1) (14.4) (89.5)
Profit before tax and
exceptional items 162.2 11.0 173.2 112.1 2.4 114.5 51
Exceptional items 0.1 (0.2) (0.1) (16.3) (5.9) (22.2)
Profit before tax 162.3 10.8 173.1 95.8 (3.5) 92.3 88
Tax (45.6) (3.0) (48.6) (28.9) 0.7 (28.2)
Profit after tax 116.7 7.8 124.5 66.9 (2.8) 64.1 94
Cash Flow
Cash inflow from operating activities of £269.0 million represents an increase of 39% on prior year. Free cash
inflow increased from £60.9 million to £119.0 million, representing an increase of 95%:
Year ended 30 September
2003 2002
£m £m
Operating cash inflow 269.0 193.1
Interest (83.5) (84.4)
Tax (16.5) (8.3)
Capital expenditure (24.5) (27.1)
Dividends (25.5) (12.4)
Free cash flow 119.0 60.9 Enterprise Inns Annual Report 2003 10
Finance Director’s Report 
In addition, net receipts from the purchase and sale of individual pubs generated £24.6 million, an increase of
£17.3 million on prior year:
2003 2002
£m £m
Acquisition costs (16.2) (17.7)
Disposal proceeds 40.8 25.0
24.6 7.3
Debt Facilities 
Cash inflows during the year facilitated the repayment of £135.5 million of borrowings and resulted in debt at
year-end of £1,395 million:-
2003 2002
£m £m
Corporate bonds and debentures 835.0 585.0
Syndicated bank debt 560.0 945.0
Loan notes – 0.5
1,395.0 1,530.5
On 3 March 2003, the Company issued £250 million of Secured bonds with interest payable at 6.5% per annum
until redemption in December 2018. This issue increased the level of corporate bonds from £585 million at
September 2002 to £835 million at September 2003. The proceeds of the issue were used to repay syndicated
bank debt.
Following the end of the financial year, on 23 October 2003, a further issue of £350 million of bonds was made
which has been consolidated with the issue made in March 2003, to bring the total amount to £600 million. The
proceeds were used to repay syndicated bank debt.
A total of £1,185 million of long-term debt facilities are now in place at a weighted average interest cost of
6.5% per annum and with a weighted average life to maturity of almost 19 years.
Balance Sheet
The net assets of the Group at the year end were £1,082.3 million which compares with £693.5 million as at
30 September 2002.
The book value of the pub estate has increased by 13% in the year from £2,233.0 million to £2,512.4 million.
This increase includes a revaluation surplus of £283.5 million, following completion of the annual valuation
exercise. Pubs within the estate are valued on an existing use basis, principally by Humberts Leisure Limited
(Humberts), the Company’s retained valuer. They report that during the year there has been increased demand
and competition for good quality individual pubs which has resulted in higher prices being achieved. These
recent market developments have been reflected in the valuation of the Enterprise estate which does not
include a lotting premium. In the past, Humberts had advised this would have been about 20%, but given the
significant increase in individual pub values, Humberts now advise that a lotting premium would be in the
order of 10%. Enterprise Inns Annual Report 2003 11
Interest
Excluding the contribution in the year from Unique, net interest payable was £92.0 million, which was covered
2.8 times.
At the time of the acquisition of Laurel, interest rate swap contracts (swaps) of £550 million were put in place
at an interest rate payable of 5.75% until 30 November 2004, and at a rate of 6.66% thereafter, until
termination on 1 June 2012. These swaps, along with interest rates fixed through the issue of secured bonds,
result in 99% of the Group’s debt at the year end being fixed at a blended interest rate of less than 7% for a
weighted average life of almost 16 years.
Tax charge
The tax charge of £48.6 million represents an effective rate of 28.1% and is in line with the rate reported at the
half year. The effective rate is below the statutory rate of 30% due to the release of £4.9 million of provisions
no longer required following the closure of prior years’ computations.
The tax charge of £48.6 million comprises corporation tax of £17.6 million and deferred tax of £31.0 million.
The current year corporation tax charge represents only 10.2% of profits. This reflects a one-off tax deduction of
£17 million in respect of a write-down in value relating to interest rate swaps in subsidiary companies, which
will reverse over the 10 year life of the swaps.
Dividend payment
The directors are recommending the payment of a final dividend of 11.4 pence per ordinary share of 10 pence
each to be paid on 26 January 2004. This will result in a full year dividend of 17.1 pence per share, an increase
of 21% on prior year. The dividend is covered 4.3 times.
D C George
Finance Director
Finance Director’s Report  Enterprise Inns Annual Report 2003 12
Directors’ Report
The directors present their report and accounts for the year ended 30 September 2003.
Accounts and dividends
The Group profit for the year, after taxation, amounted to £124.5m (2002 — £64.1m) and is dealt with as shown
in the profit and loss account.
The directors recommend the payment of a final dividend of 11.4 pence (2002 — 9.4 pence) per ordinary share
of 10 pence each to be paid on 26 January 2004 to members on the register on 30 December 2003. When
added to the interim dividend of 5.7 pence (2002 — 4.7 pence), this produces a total dividend for the year of
17.1 pence (2002 — 14.1 pence) per ordinary share.
Principal activities and review of the business
The principal activities of the Group continued to be the sale of beers and cider and the collection of rents from
its estate of licensed premises.
A review of the year’s activities is given in the Chairman’s Statement, Chief Executive’s Review and the Finance
Director’s Report on pages 3 to 11. Taken together these are intended to constitute an Operating and Financial
Review.
On 23 September 2003 the assets and liabilities of Enterprise Pubs Seven Limited were hived up into Enterprise
Inns plc.
Employment policies
The Group is committed to equal opportunities and the creation of an entirely non-discriminatory working
environment. The aim of the policy is to ensure that no job applicant or employee receives less favourable
treatment regardless of, amongst other matters, gender, marital status, race, age or disability.
The Group gives full consideration to applications for employment from disabled persons where the
requirements of the job can be adequately fulfilled by a handicapped or disabled person.
Where existing employees become disabled, it is the Group’s policy wherever practicable to provide continuing
employment under normal terms and conditions and to provide training and career development and
promotion to disabled employees wherever appropriate.
Employee involvement
The Group believes that effective training is essential to the maintenance and improvement of the Group’s
success and individual performance. The Group is committed to providing all employees with relevant training
to meet the business needs of the Group and to improve individual employee skills.
During the year, employee attitudes have been researched through a survey and the management seek to
respond positively to the needs of the employees. Also during the year, the policy of providing employees with
information about the Group has been continued through the newsletter “The Innsider”. Regular meetings are
held between local management and employees to allow a free flow of information and ideas. Employees are
encouraged to invest in the Group through participation in savings-related share options schemes.
Directors and their interests
The directors at the date of this report are listed on page 2. All directors served throughout the year other than
Mr D A Harding who was appointed on 6 November 2003.
In accordance with the Articles of Association of the Company, Mr M F Garner and Mr W S Townsend retire
from the Board at the Annual General Meeting by rotation and offer themselves for re-election.
The interests of the directors in the share capital of the Company, other than with respect to options to acquire
ordinary shares (which are detailed in the directors’ remuneration report), were as follows: Enterprise Inns Annual Report 2003 13
Directors’ Report
30 September 30 September
Ordinary Shares of 10 pence each 2003 2002 
H V Reid Beneficial 61,250 61,250
G E Tuppen Beneficial 460,000 590,000
as Trustee 88,400 90,976
D C George Beneficial 426,000 426,000
as Trustee 57,000 63,000
G W Harrison Beneficial 269,402 120,747
W S Townsend Beneficial 19,028 3,062
M F Garner Beneficial 16,373 16,373
A J Stewart Beneficial 7,000 3,500
The executive directors, along with other employees, have been granted options over the shares of the
Company. Details of these interests are disclosed in the Report on Directors’ Remuneration. 
There have been no changes in the interests of directors between the balance sheet date and the date of
approval of the accounts.
Notifiable interests in shares
As at 25 November 2003 the Company had been notified of the following material holdings of 3% or more of
the Company’s issued share capital:
Number of Percentage
Ordinary of Issued
Shares Share Capital
Barclays PLC18,522,26410.9
FMR Corp/Fidelity International Limited 10,579,273 6.2
Scottish Widows Investment Partnership Limited 6,336,298 3.7
Prudential plc 5,294,410 3.1
Legal & General Group plc 5,138,973 3.0
Creditors payment policy and practice
The Company agrees terms and conditions for its business transactions with suppliers. Payment is then made in
accordance with these terms, subject to the terms and conditions being met by the supplier. 
At the year end the Company had an average of 25 days’ purchases outstanding in trade creditors.
Environment
Enterprise Inns recognises its responsibility to achieve good environmental practice and to continue to strive
for improvement in its environmental impact. Our approach is to work towards continuous improvement
through education, communication and direct action where applicable.
At pub level, we work closely with licensees, suppliers and contractors to promote the efficient and effective
use of resources, and seek to provide business solutions which enable a responsible approach to the
environment. The Company promotes a utilities management service to licensees, which includes the option to
purchase renewable, or “green”, electricity, and provides advice in the efficient usage of energy. Enterprise Inns Annual Report 2003 14
Directors’ Report 
The Company is an active supporter of the “Public Places Charter” on smoking in public places, a voluntary code
established by the Department of Health and the leisure industry. We are committed, through an advisory
programme, to encouraging our retail partners to provide appropriate solutions and signage to allow pub
customers to make informed decisions as to their preferred choice of venue. The Company proactively promotes
the inclusion of appropriate ventilation facilities within all pub developments. Enterprise Inns also operates a no
smoking policy within its head office.
Amongst employees, the Company actively encourages home working amongst its staff, and is developing a
transport policy for head office staff which seeks to promote employee behaviour which is complementary with
local planning, transport and environmental guidelines. 
All Executive Directors are responsible for the promotion of good practice in environmental matters, and report
to the Board accordingly.
In Health and Safety matters, the Company has reporting systems and procedures in place to ensure that all
health and safety risks are properly addressed. A cross-functional risk management group meets regularly to
develop policy, share best practice and raise awareness throughout the organisation and its customer base. The
group reports to the Company Secretary, who is responsible for regular reporting to the Board.
Social responsibility 
Enterprise Inns believes that the interests of responsible, entrepreneurial pub businesses are substantially
aligned with the interests of local communities and consumers, whether pub-goers or not. In this regard, the
Company seeks to ensure that its pubs provide a friendly, safe and controlled environment, and that its business
support activities promote the positive contributions that pubs make to their local communities.
The Company is an associate member of the Portman Group, the industry-funded body established to promote
sensible drinking, help prevent misuse of alcohol, encourage responsible marketing and foster a balanced
understanding of alcohol-related issues. The Company is a signatory to the Portman Group’s Code of Practice,
and works proactively with drinks suppliers to ensure that they adhere to a responsible advertising, pricing,
packaging and promotions regime.
The Company also participates in a number of partnerships with local authorities to develop and implement local
policies and strategies which are designed to address the potential consequences of alcohol misuse whilst not
penalising the majority of responsible licensees and their customers.
The Chief Executive is responsible for the development and application of the Company’s approach to social
responsibility matters.
Statement of directors’ responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of
the state of affairs of the Company and of the Group and of the profit or loss of the Group for that period. In
preparing those accounts, the directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent;
 state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the accounts.
The directors confirm that the accounts comply with the above requirements.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at Enterprise Inns Annual Report 2003 15
Directors’ Report
any time the financial position of the Group and to enable them to ensure that the accounts comply with the
Companies Act 1985. They are also responsible for safeguarding the assets of the Group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
Recent developments
The Company will be seeking shareholder approval at the Annual General Meeting on 22 January 2004,
amongst other matters, for:
 The subdivision of each ordinary share of 10 pence each (issued and unissued) into two ordinary shares
of 5 pence. If approved, the share split is expected to become effective on 23 January 2004.
 The adoption of New Articles of Association to ensure that the Company’s constitutional documents
comply with recent developments in company law.
 The authority to sell for cash any shares purchased in the market and subsequently held by the
Company “in treasury” (subject to the limitations under investor protection guidelines).
Further details can be found in the Notice of Meeting and Explanatory notes on pages 53 to 58.
Auditors
A resolution to reappoint Ernst & Young LLP as the Group’s auditor will be put to the members at the
forthcoming Annual General Meeting. 
On behalf of the Board
D C George
Secretary
25 November 2003 Enterprise Inns Annual Report 2003 16
Corporate Governance
The Company is committed to high standards of corporate governance. The Board is accountable to the
Company’s shareholders for good corporate governance. The statement below describes how the principles of
corporate governance are applied to the Company and the Company’s compliance with the Code provisions set
out in Section 1 of the Combined Code prepared by the Committee on Corporate Governance chaired by Sir
Ronald Hampel.
Statement by the directors on compliance with the Code of Best Practice
The directors are pleased to report that the Company has been in full compliance with the provisions set out in
Section 1 of the Combined Code throughout the year. 
The company’s Articles of Association provide for one-third of the directors to be subject to re-election every
year. The Board has determined that all directors are subject to re-election at least every three years.
A statement of the directors’ responsibilities in respect of the accounts is set out on page 14 and 15. Below is
a brief description of the role of the Board and its committees followed by a statement regarding the Group’s
system of internal control and a statement on the business as a going concern.
The Workings of the Board and its committees
The Board
The Board currently comprises the independent non-executive chairman, the chief executive, three executive
directors and the three independent non-executive directors. These directors have been identified in the
biographical details on page 2. The Board is responsible to the shareholders for the proper management of the
Group. It meets on a regular basis to review trading performance, to set and monitor strategy, and to examine
major capital expenditure and acquisition opportunities.
The following committees deal with specific aspects of the Group’s affairs:
Audit Committee
The audit committee comprises Mr M F Garner, Mr H V Reid, Mr A J Stewart and Mr D A Harding. The
committee is chaired by Mr M F Garner, and meets not less than twice annually. The committee provides a
forum for reporting by the Group’s auditors. The meetings are also attended by other directors by invitation.
The audit committee is responsible for reviewing a wide range of financial matters including the interim and
annual accounts prior to their submission to the Board, and monitoring the controls which are in force to
ensure the integrity of the financial information reported to the shareholders. The audit committee advises the
Board on the appointment of external auditors and on their remuneration and discusses the nature and scope of
their work.
Remuneration Committee
The remuneration committee comprises Mr A J Stewart, Mr H V Reid, Mr M F Garner and Mr D A Harding. The
committee is chaired by Mr A J Stewart. The committee is responsible for determining the contract terms,
remuneration and other benefits for executive directors, including performance related bonus schemes.
The report of the remuneration committee, which includes details of directors’ remuneration and directors’
interests in options, together with information on service contracts, is set out on pages 18 to 24.
Nomination Committee
The nomination committee comprises Mr H V Reid, Mr G E Tuppen, Mr M F Garner, Mr A J Stewart and
Mr D A Harding. Mr H V Reid is chairman of the nomination committee. The committee is responsible for
proposing candidates for appointment to the Board, having regard to the balance and structure of the Board. 
Relations with Shareholders
Communications with shareholders are given high priority. The operating and financial review on pages 3 to 11
includes a detailed review of the business and future developments. There is a regular dialogue with
institutional shareholders including presentations after the Company’s preliminary announcement of the year
end results and at the half year. Enterprise Inns Annual Report 2003 17
Corporate Governance
The Board uses the Annual General Meeting to communicate with private and institutional investors and
welcomes their participation. The Chairman aims to ensure that the chairmen of the audit, remuneration and
nomination committees are available at Annual General Meetings to answer questions. Details of resolutions to
be proposed at the Annual General Meeting on 22 January 2004 can be found in the Notice of the meeting on
pages 53 to 55.
Internal Control
The directors acknowledge that they are responsible for the Group’s systems of internal control and for
reviewing their effectiveness.
An ongoing process, in accordance with the guidance of the Turnbull Committee on internal control, has been
established for identifying, evaluating and managing risks faced by the Group. The risk management process
and systems of internal control are designed to manage rather than eliminate the risk of failure to achieve the
Group’s strategic objectives. It should be recognised that such systems can only provide reasonable and not
absolute assurance against material misstatement or loss. This process has been in place since the start of the
financial year and up to the date of approval of the accounts. The Group’s associate, The Unique Pub Company
Limited, has not been dealt with as part of the Group for the purposes of applying the Turnbull Guidance.
The key procedures which the directors have established with a view to providing effective internal control are
as follows:
 Regular Board meetings to consider a schedule of matters reserved for directors’ consideration.
 The Board carries out an annual review of corporate strategy which includes a review of risks facing the
business, and how these risks are monitored and managed on an ongoing basis within the organisation.
This process is regularly reviewed by the Board.
 An established organisational structure with clearly defined lines of responsibility and delegation of
authority.
 Documented and enforced policies and procedures.
 Appointment of staff of the necessary calibre to fulfil their allotted responsibilities.
 Comprehensive budgets and forecasts, approved by the Board, reviewed and revised on a regular basis,
with performance monitored against them and explanations obtained for material variances.
 A detailed investment approval process, requiring Board approval for major projects. Post-investment
appraisals are conducted and are reviewed by the Board.
 The audit committee of the Board, comprising non-executive directors, considers significant financial
control matters as appropriate.
The Board has reviewed the effectiveness of the system of internal control. This review included a review of
business risks at function level, and how these risks are managed and reported within the organisation on an
ongoing basis. 
Going Concern
After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. For this reason they continue to adopt the going
concern basis in preparing the accounts. Enterprise Inns Annual Report 2003 18
Report on Directors’ Remuneration
INFORMATION NOT SUBJECT TO AUDIT
Remuneration Committee and Advisers
The Company’s Remuneration Committee is chaired by Mr A J Stewart, its other members comprise Mr H V
Reid, Mr M F Garner and Mr D A Harding. The Committee makes recommendations to the Board, within agreed
terms of reference, on an overall remuneration package for executive directors and other senior managers.
The Remuneration Committee complies with the Combined Code for Corporate Governance of the Financial
Services Authority. This report also complies with disclosures required by the Director Remuneration Report
Regulations 2002.
During the year the Committee and the Company received specific advice on remuneration matters relating to
share schemes and the Enterprise Inns Incentive Plans from Ernst & Young LLP (E&Y). E&Y are the Group’s
auditors and also provide advisory services in respect of non-audit matters and taxation. 
Remuneration Policy — Executive Directors
In relation to executive directors, the Remuneration Committee has responsibility in determining an overall
remuneration package for executive directors in order to attract, retain and motivate high quality executives
capable of achieving the Company’s objectives and thereby enhancing shareholder value. To achieve this, the
remuneration package consists of basic salary and benefits, pensions, performance related cash bonuses and
long and short-term incentive plans under which incentives earned are satisfied by the award of shares. The
details of individual components of the remuneration package and service contracts are as follows:
Basic salary and benefits:
Basic salary is a fixed cash sum payable monthly. The basic salary and benefits are reviewed annually. Benefits
principally comprise car allowances or the use of a motor car, fuel and private medical insurances. 
Pensions:
The pension contributions are amounts paid to the directors’ individual defined contribution schemes.
Enterprise Inns Incentive Plans
At the Annual General Meeting held on 21 January 1997 an ordinary resolution was passed adopting the
Enterprise Inns Incentive Plan (“the Plan”), which provides for participants to earn non-pensionable cash
bonuses and short-term and long-term incentives. The Plan rules recite the Company’s intention to satisfy all
share incentives awarded under the Plan using ordinary shares held in the Employee Benefit Trust.
At the Annual General Meeting held on 24 January 2002 an ordinary resolution was passed adopting the
Enterprise Inns Incentive Plan 2002 (“the 2002 Plan”). The 2002 Plan has replaced the Plan and no further
awards are to be made under the Plan. The 2002 Plan also provides for participants to earn non-pensionable
cash bonuses and short-term and long-term share incentives will be satisfied using shares held in the
Employee Benefit Trust.
The Company established an Employee Benefit Trust on 26 September 1996. As at 30 September 2002 the
trust, which has been funded by a combination of loans and gifts from the Company, had purchased an
aggregate of 893,558 shares. On 17 September 2003 the trust purchased 70,000 ordinary shares and on
18 September 2003 the trust purchased a further 150,000 ordinary shares. The cost of these purchases was
£2,039,000 and was funded by a gift from the Company. Options over 141,555 shares were exercised on
2 December 2002. It is intended that the remaining 972,003 shares held by the trust will be used to satisfy
other awards made under the Enterprise Inns Incentive Plans. 
Under the terms of the Enterprise Inns plc Incentive Plans, executive directors can participate in long-term and
short-term incentives dependent upon achievement of compound growth in adjusted earnings per share
(adjusted EPS). Adjusted EPS has been chosen to reflect the core focus of the Group on continuous and
sustainable earnings growth. The Committee believes that these arrangements provide rewards which reflect an
appropriate balance between individual and Company performance and align rewards of Directors with the long-
term interests of shareholders. These awards are satisfied by the issue of shares. Further details are set out below. Enterprise Inns Annual Report 2003 19
Performance related bonuses:
Under the terms of the 2002 Plan, executive directors are eligible to participate in an annual cash bonus
scheme as determined by the Remuneration Committee. The annual cash bonus is expressed as a percentage
of salary calculated by reference to the growth in adjusted EPS. To qualify for any award, the growth of adjusted
EPS must exceed the RPI by 2.5% and to qualify for the maximum award of 30% of salary, adjusted EPS growth
must exceed the RPI by 15% in the relevant financial year. Awards between the minimum and maximum limits
are calculated on a straight-line basis pro rata to the growth in adjusted EPS between the minimum and
maximum targets. The cash bonus awards for the year are shown in the remuneration table on page 21.
Short-term incentive
Under the terms of the 2002 Plan the short-term incentive depends upon achievement of annual growth in
adjusted EPS measured against RPI. There is a one-year performance period for awards. No short-term award is
made unless adjusted EPS exceeds RPI by at least 2.5% over the performance period. To achieve the maximum
award of 20%, adjusted EPS must exceed RPI by 15%. Awards between the minimum and maximum limits are
calculated on a straight-line basis pro rata to the growth in adjusted EPS between the minimum and maximum
targets. Short-term incentives may not ordinarily be exercised for 36 months after the end of the performance
criteria period.
Long-term incentive
Under the Plan, the long-term incentive awards ordinary shares to participants upon achievement of compound
growth in EPS measured against RPI over 3 years. To qualify for any award, adjusted EPS must exceed RPI over
a three year period by 5% compound (15.8% simple), and to qualify for the maximum award of 50% of salary
(averaged over a three year period), adjusted EPS must exceed RPI over a three year period by 15% compound
(52.1% simple). Awards between the minimum and maximum limits are calculated on a straight-line basis
pro rata to the growth in adjusted EPS between the minimum and maximum targets. Long-term incentives may
not ordinarily be exercised until 24 months after the end of the performance criteria period. 
Under the 2002 Plan, the long-term incentive awards ordinary shares to participants upon achievement of
compound growth in adjusted EPS measured against RPI over 3 years. To qualify for any award, adjusted EPS must
exceed RPI over a three-year period by 5% compound (15.8% simple), and to qualify for the maximum award of
100% of salary (averaged over a three year period), adjusted EPS must exceed RPI over a three-year period by 20%
compound (72.8% simple). Awards between the minimum and maximum limits are calculated on a straight-line
basis pro rata to the growth in adjusted EPS between the minimum and maximum targets. Long-term incentives
may not ordinarily be exercised until 24 months after the end of the performance criteria period. 
The participants of the 2002 plan will bear the cost of any income tax and any primary class 1 or secondary
class 1 national insurance contributions for which the Company must account to the Inland Revenue. 
Remuneration Policy — Non-Executive Directors
Fees:
The fees for non-executive directors are determined by the Board within the limits in the Articles of
Association. The non-executive directors are not involved in any discussions or decision about their own
remuneration.
The remuneration of the non-executive directors takes the form solely of fees, which are set by the Board
having taken advice on appropriate levels.
Service contracts:
The Company’s policy is for all executive directors to have a service contract under which they are entitled to
receive twelve months’ notice of termination. There are no special provisions in the executive directors’
contracts for compensation in the event of loss of office. The Committee would consider the circumstances of
any individual case of early termination and would determine compensation payments accordingly. A fair but
robust principle of mitigation would be applied to the payment of compensation in the context of professional
advice received as to contractual entitlement.
Report on Directors’ Remuneration Enterprise Inns Annual Report 2003 20
Report on Directors’ Remuneration 
The service contracts of the executive directors include the following terms:
Executive Directors Date of Agreement Effective Date Notice Period
G E Tuppen 25 October 1995 1 October 1995 12 months
D C George 25 October 1995 1 October 1995 12 months
G W Harrison 25 October 1995 1 October 1995 12 months
W S Townsend 31 October 2000 1 October 2000 12 months
The terms of appointment for Mr H V Reid, Mr M F Garner, Mr A J Stewart and Mr D A Harding reflect best
practice. Their respective appointments shall continue on an annual basis from AGM to AGM, subject to re-
election, when applicable. 
In respect of the Chairman and non-executive Directors, the dates on which their appointments took effect and
the current expiry dates are as follows:
Chairman and
non-executive Directors Date of Appointment Expiry Date
H V Reid 21 January 1997 Terminable on 12 months’ notice
M F Garner 29 September 1995 Terminable on 6 months’ notice
A J Stewart 29 May 2001 Terminable on 6 months’ notice
D A Harding 6 November 2003 Terminable on 6 months’ notice
Biographical details of all directors can be found on page 2.
Forward-looking statement
The Committee will keep the existing remuneration arrangements, as detailed in this report, under review
during the next year to ensure that the Company’s reward programmes remain competitive and provide
appropriate incentives.
Performance graph
The graph below shows the total shareholder return (TSR), in terms of the change in value (with dividends
reinvested) of an initial investment of £100 on 30 September 1998 in a holding of the Company’s shares
against the corresponding total shareholder return in a hypothetical holding of shares in the companies
represented in the FTSE 250 index. The FTSE 250 index was selected as it represents a broad equity market
index in which the Company is a constituent member.
Enterprise Inns plc TSR Chart
30 Sept 98
650
30 Sept 99 30 Sept 00 30 Sept 01 30 Sept 02 30 Sept 03
550
450
350
250
150
50
Enterprise Inns plc
FTSE 250
Value (£)
204
146
150
128
115
97
123
555
323
254 Enterprise Inns Annual Report 2003 21
INFORMATION SUBJECT TO AUDIT
Directors’ Remuneration
The remuneration of the Chairman, the executive directors and fees payable to the non-executive directors are
as follows:
£000 Per-
formance
Chairman and Basic related Deferred Total Total
non-executive Directors Fees salary Benefits (a) bonus (b) bonus (c) Pension 2003 2002
H V Reid 135 ––––– 135 120
M F Garner 33 ––––– 33 30
A J Stewart 33 ––––– 33 30
K M H Millar 
(d)
––––––– 10
Executive Directors
G E Tuppen – 400 20 120 80 100 720 621
D C George – 240 8 72 48 60 428 375
G W Harrison – 220 8 66 44 55 393 349
W S Townsend – 190 10 57 38 48 343 283
201 1,050 46 315 210 263 2,085 1,818
(a) Benefits include car allowances or the use of a motor car, fuel and private medical insurances.
(b) The bonus disclosed relates to the cash bonus awarded under the 2002 Plan and earned in the year ended
30 September 2003.
(c) The deferred bonus disclosed relates to the value of shares awarded as short-term incentives for the year
under the 2002 Plan and earned in the year ended 30 September 2003.
(d) K M H Millar retired from the Board on 24 January 2002.
Awards of long-term share incentives made during the year under the 2002 Plan are disclosed on pages
23 and 24.
The above pension contributions are amounts paid to the directors’ individual defined contribution schemes.
Interests in options
The Company currently has two share option schemes by which executive directors and other executives are
able to acquire shares in the Company. The first is the Enterprise Inns Executive Share Option Scheme: current
policy is not to grant further options to executive directors under the scheme, but options previously granted
under this scheme are referenced (a) in the table overleaf. The second is the Enterprise Inns Savings Related
Share Option Scheme and options granted under this scheme are referenced (b) in the table overleaf.
Report on Directors’ Remuneration Enterprise Inns Annual Report 2003 22
Report on Directors’ Remuneration 
The interests of the directors were as follows:
Market At Granted Exercised At
price at date Exercise 1 October during during 30 Sept
of exercise price 2002 the year the year 2003
pence pence No. No. No. No.
G E Tuppen (b1) 249 6,742 – – 6,742
D C George (b1) 249 6,742 – – 6,742
G W Harrison (a) 584 101 75,000 – (75,000) –
(a) 812 101 73,545 – (73,545) –
(b1) 249 5,394 – – 5,394
(b3) 464 – 707 – 707
153,939 707 (148,545) 6,101
W S Townsend (a) 812 325 38,246 – (38,246) –
(b1) 249 2,696 – – 2,696
(b2) 419 2,366 – – 2,366
43,308 – (38,246) 5,062
The options are exercisable between the following dates:
(b1)
1 February 2006 — 1 August 2006
(b2)
1 February 2007 — 1 August 2007
(b3)
1 February 2008 — 1 August 2008
There are no performance criteria restricting the exercise of options held under the SAYE scheme, scheme (b).
Gains made on share options Number of shares at
exercise price Price at Gain Gain
exercise 2003 2002
101p 325p Total (pence) £000 £000
G E Tuppen – – – – – 616
G W Harrison 75,000 – 75,000 584 362 10
G W Harrison 73,545 – 73,545 812 523 –
W S Townsend – 38,246 38,246 812 186 –
Total – – – – 1,071 626
Date of grant: 03/11/95 13/12/99 – – – –
The market price of the Company’s shares on 30 September 2003 was 932.5 pence per share and the high and
low share prices during the year were 939.0 pence and 518.5 pence respectively.
Short-term incentive
During the year short-term awards granted under the Plan on 18 December 1998 were exercised by the
directors as follows:
Market price
at date of Number of Aggregate
Date of exercise shares gain  
exercise Pence exercised £000
G E Tuppen 02/12/02 550 11,469 63
D C George 02/12/02 550 7,741 43
G W Harrison 02/12/02 550 6,882 38 Report on Directors’ Remuneration 
During the year short-term incentives awarded under the 2002 Plan on a conditional basis were as follows:
Market value of
Date ordinary shares*
granted £000 Exercise period
G E Tuppen 20/12/02 80 1/10/2006 — 20/12/2016
D C George 20/12/02 48 1/10/2006 — 20/12/2016
G W Harrison 20/12/02 44 1/10/2006 — 20/12/2016
W S Townsend 20/12/02 38 1/10/2006 — 20/12/2016
* Market value is taken at the announcement date of results for the relevant year.
These awards are included in the “deferred bonus” column in the table of Directors’ Remuneration on page 21.
Short-term awards made under the Plan and the 2002 Plan in the years from 1999 to 2002 have become
unconditional. The number of shares awarded to the directors, and still outstanding, and the market value of
such shares at 30 September 2003 (932.5 pence per share) in respect of these awards are as follows:
Date Number of Market value
granted shares £000 Exercise period
G E Tuppen 18/12/99 14,061 131 1/10/2003 — 18/12/2006
18/12/00 9,455 88 1/10/2004 — 18/12/2007
16/04/02 12,454 116 1/10/2005 — 16/04/2012
D C George 18/12/99 9,687 90 1/10/2003 — 18/12/2006
18/12/00 6,240 58 1/10/2004 — 18/12/2007
16/04/02 7,424 69 1/10/2005 — 16/04/2012
G W Harrison 18/12/99 8,438 79 1/10/2003 — 18/12/2006
18/12/00 5,483 51 1/10/2004 — 18/12/2007
16/04/02 6,825 64 1/10/2005 — 16/04/2012
W S Townsend 18/12/99 5,313 50 1/10/2003 — 18/12/2006
18/12/00 3,971 37 1/10/2004 — 18/12/2007
16/04/02 5,628 52 1/10/2005 — 16/04/2012
Long-term incentive 
During the year long-term awards granted under the Plan on 18 December 1997 were exercised by the
directors as follows:
Market price Number of 
at date of shares
Date of exercise exercised Aggregate 
exercise Pence £000 gain
G E Tuppen 02/12/02 550 50,753 279
D C George 02/12/02 550 34,682 191
G W Harrison 02/12/02 550 30,028 165
During the year long-term incentives awarded under the 2002 Plan on a conditional basis were as follows:
Date Market value of
granted ordinary shares Exercise period
G E Tuppen 20/12/02 up to 100% of salary † 1/10/2007 — 20/12/2016
D C George 20/12/02 up to 100% of salary † 1/10/2007 — 20/12/2016
G W Harrison 20/12/02 up to 100% of salary † 1/10/2007 — 20/12/2016
W S Townsend 20/12/02 up to 100% of salary † 1/10/2007 — 20/12/2016
† Salary is based on the average rate paid to the participant between 1 October 2002 and 30 September 2005.
Market value is taken at the start of the incentive period (562.3 pence). 
Enterprise Inns Annual Report 2003 23 Enterprise Inns Annual Report 2003 24
Report on Directors’ Remuneration 
Details of long-term incentives awarded under the Plan on a conditional basis in previous years and
outstanding as at 30 September are as follows:
Date Number of 
granted shares* Exercise period
G E Tuppen 18/12/00 62,495 1/10/2005 — 18/12/2007
D C George 18/12/00 38,354 1/10/2005 — 18/12/2007
G W Harrison 18/12/00 34,801 1/10/2005 — 18/12/2007
W S Townsend 18/12/00 28,321 1/10/2005 — 18/12/2007
* Salary is based on the average rate paid to participants between 1 October 2000 and 30 September 2003.
Market value is taken at the start of the incentive period (265.8 pence). As compound EPS growth over the
performance criteria period has exceeded the target of 15% per annum which is the level for the achievement
of the maximum award under the scheme, these awards will become unconditional and the number of shares
to be awarded are shown above subject to approval by the Remuneration Committee.
Details of long-term incentives awarded under the 2002 Plan on a conditional basis in previous years and
outstanding as at 30 September are as follows:
Date Market value of
granted ordinary shares Exercise period
G E Tuppen 16/04/02 up to 100% of salary† 1/10/2006 — 16/04/2012
D C George 16/04/02 up to 100% of salary† 1/10/2006 — 16/04/2012
G W Harrison 16/04/02 up to 100% of salary† 1/10/2006 — 16/04/2012
W S Townsend 16/04/02 up to 100% of salary† 1/10/2006 — 16/04/2012
† Salary is based on the average rate paid to participants between 1 October 2001 and 30 September 2004.
Market value is taken at the start of the incentive period (459.2 pence). 
The performance criteria periods for the 1998/9 and 1999/2000 long-term incentives awarded under the Plan
have now ended and these awards have become unconditional. The number of shares awarded to the directors
and the market value of such shares at 30 September 2003 (932.5 pence per share) in respect of these awards
are as follows:
Date Number of Market Value
granted shares £000 Exercise period
G E Tuppen 18/12/98 57,028 532 1/10/03 — 18/12/05
18/12/99 36,431 340 1/10/04 — 18/12/06
D C George 18/12/98 38,441 358 1/10/03 — 18/12/05
18/12/99 23,351 218 1/10/04 — 18/12/06
G W Harrison 18/12/98 33,794 315 1/10/03 — 18/12/05
18/12/99 20,839 194 1/10/04 — 18/12/06
W S Townsend 18/12/99 15,371 143 1/10/04 — 18/12/06
The value of the long-term share incentives accrued during the period in respect of awards made relating to the
current and previous years, and charged to the profit and loss account, under the Enterprise Inns Incentive Plan
are as follows:
2003 2002
£000 £000
G E Tuppen 394 247
D C George 233 148
G W Harrison 214 138
W S Townsend 227 122
1,068 655
On behalf of the Board
A J STEWART
Chairman of the remuneration committee Enterprise Inns Annual Report 2003 25
Group Profit and Loss Account
for the year ended 30 September 2003
2003 2003 2003 2002 2002 2002
Continuing Share of Continuing Share of
Operations Associate Total Operations Associate Total
Notes £m £m £m £m £m £m
Turnover 2 480.6 – 480.6 368.9 – 368.9
Cost of sales 3 (217.7) – (217.7) (181.5) – (181.5)
Gross profit 262.9 – 262.9 187.4 – 187.4
Administrative expenses (29.7) – (29.7) (24.2) – (24.2)
Exceptional administrative expenses 4 ––– (8.5) – (8.5)
Other operating income 5 21.0 – 21.0 24.0 – 24.0
Group operating profit 6 254.2 – 254.2 178.7 – 178.7
Share of operating profit in associate – 39.0 39.0 – 16.8 16.8
Total operating profit 254.2 39.0 293.2 178.7 16.8 195.5
Net profit/(loss) on disposal of
tangible fixed assets 7 0.1 (0.2) (0.1) (0.2) 0.2 –
Profit on ordinary activities before interest 
and taxation 254.3 38.8 293.1 178.5 17.0 195.5
Interest receivable and similar income 10.1 – 10.1 5.1 – 5.1
Interest payable and similar charges 9 (102.1) (28.0) (130.1) (80.2) (14.4) (94.6)
Exceptional interest payable and
similar charges 9 ––– (7.6) (6.1) (13.7)
(92.0) (28.0) (120.0) (82.7) (20.5) (103.2)
Profit on ordinary activities before taxation 162.3 10.8 173.1 95.8 (3.5) 92.3
Tax on profit on ordinary activities 10 (45.6) (3.0) (48.6) (28.9) 0.7 (28.2)
Profit on ordinary activities after taxation
and attributable to members of the
parent company 116.7 7.8 124.5 66.9 (2.8) 64.1
Ordinary dividends on equity shares 12 (29.0) – (29.0) (20.5) – (20.5)
Retained profit for the year 25 87.7 7.8 95.5 46.4 (2.8) 43.6
Earnings per share – basic 13 73.7p 46.7p 
– adjusted* 13 72.3p 59.0p†
– diluted 13 72.9p 46.2p
* excludes exceptional items, goodwill amortisation and a one-off tax credit in 2003.
† restated to exclude goodwill amortisation. Enterprise Inns Annual Report 2003 26
Note of Historical Cost Profits 
and Losses for the year ended 30 September 2003
Group Statement of Total Recognised
Gains and Losses for the year ended 30 September 2003
2003 2002
£m £m
Profit for the financial year excluding share of associated undertakings 116.7 66.9
Share of profit/(loss) in associated undertakings for the financial year 7.8 (2.8)
Profit for the financial year attributable to members of the parent company 124.5 64.1
Unrealised surplus on revaluation of licensed estate 283.5 13.7
Share of unrealised surplus on revaluation of licensed estate in associate 9.6 18.5
Share of actuarial loss recognised in the defined benefit pension scheme of associate (0.4) –
Total recognised gains and losses relating to the year 417.2 96.3
2003 2002
£m £m
Reported profit on ordinary activities before taxation 173.1 92.3
Realised deficits against historical costs on disposal of 
properties revalued in earlier years (7.6) (7.5)
Historical cost profit on ordinary activities before taxation 165.5 84.8
Historical cost profit for the year retained after taxation and dividends 87.9 36.1 Enterprise Inns Annual Report 2003 27
Group Balance Sheet
at 30 September 2003
2003 2002
Notes £m £m
Fixed assets
Intangible assets 14 46.3 48.8
Tangible assets 15 2,524.8 2,243.4
Investments 16 0.9 1.4
Investments in associated undertakings 16 121.3 94.6
2,693.3 2,388.2
Current assets
Assets held for resale 17 4.3 7.7
Debtors 18 39.5 51.3
Cash at bank and in hand 3.9 0.9
47.7 59.9
Creditors: amounts falling due within one year 19 (306.4) (223.6)
Net current liabilities (258.7) (163.7)
Total assets less current liabilities 2,434.6 2,224.5
Creditors: amounts falling due after more than one year 20 (1,276.1) (1,482.6)
Provision for liabilities and charges 21 (76.2) (48.4)
1,082.3 693.5
Capital and reserves
Called up share capital 24 17.0 17.0
Share premium account 25 434.8 432.3
Revaluation reserve 25 402.3 101.6
Capital redemption reserve 25 7.6 7.6
Merger reserve 25 77.0 77.0
Profit and loss account 25 143.6 58.0
Equity shareholders’ funds 26 1,082.3 693.5
Approved by the Board on 25 November 2003 and signed on its behalf by:
G E Tuppen
Directors
D C George
} Balance Sheet
at 30 September 2003
Enterprise Inns Annual Report 2003 28
2003 2002
Notes £m £m
Fixed assets
Tangible assets 15 2,524.8 1,348.9
Investments 16 657.8 918.4
3,182.6 2,267.3
Current assets
Assets held for resale 17 4.3 6.8
Debtors 18 64.5 863.9
Cash at bank and in hand 3.9 0.9
72.7 871.6
Creditors: amounts falling due within one year 19 (996.8) (1,077.2)
Net current liabilities (924.1) (205.6)
Total assets less current liabilities 2,258.5 2,061.7
Creditors: amounts falling due after more than one year 20 (1,297.9) (1,452.7)
Provision for liabilities and charges 21 (68.8) (41.8)
891.8 567.2
Capital and reserves
Called up share capital 24 17.0 17.0
Share premium account 25 434.8 432.3
Revaluation reserve 25 374.2 83.1
Capital redemption reserve 25 7.6 7.6
Profit and loss account 25 58.2 27.2
Equity shareholders’ funds 891.8 567.2
Approved by the Board on 25 November 2003 and signed on its behalf by:
G E Tuppen
Directors
D C George
} Group Statement of Cash Flows
for the year ended 30 September 2003
Enterprise Inns Annual Report 2003 29
2003 2002
Notes £m £m
Net cash inflow from operating activities 6 269.0 193.1
Return on investments and servicing of finance
Interest received 0.5 0.3
Interest paid (84.0) (84.7)
Issue costs of long-term loans (1.9) (15.0)
(85.4) (99.4)
Taxation (16.5) (8.3)
Capital expenditure and financial investment
Payments to acquire public houses (16.2) (17.7)
Payments made on improvements to public houses (22.0) (16.5)
Payments to acquire other fixed assets (2.5) (10.6)
Receipts from sales of tangible fixed assets and properties held for resale 40.8 25.0
Payments to acquire investments (2.1) –
Loans to associated undertakings – (73.6)
(2.0) (93.4)
Acquisitions and disposals
Purchase of subsidiaries – (34.4)
Net cash acquired with subsidiaries – 8.8
Expenses of acquisitions paid – (3.1)
Equity payment in associated undertakings – (0.2)
– (28.9)
Equity dividends paid (25.5) (12.4)
Cash inflow/(outflow) before financing 139.6 (49.3)
Financing
Issue of ordinary share capital 1.4 300.1
Share issue costs – (5.6)
Debt due within 1 year – new short-term loans 130.0 60.0
– repayment of short-term loans (60.5) (879.7)
Debt due beyond 1 year – new long-term loans 307.5 1,676.9
– repayment of long-term loans (515.0) (1,111.0)
(136.6) 40.7
Increase/(decrease) in cash 27 3.0 (8.6)
Reconciliation of net cash flow to movement in net debt
2003 2002
Notes £m £m
Increase/(decrease) in cash in the year 27 3.0 (8.6)
Cash outflow from change in debt 138.0 253.8
Issue costs of new long-term loans 2.0 15.0
Change in net debt resulting from cash flows 143.0 260.2
Acquired with subsidiaries – (877.3)
Amortisation of issue costs and discounts on long-term loans 23 (5.6) (3.5)
Amortisation of interest rate swap 23 3.3 –
Write-off of unamortised finance costs – (7.6)
Movement in net debt in the period 140.7 (628.2)
Net debt at 1 October 27 (1,545.5) (917.3)
Net debt at 30 September 27 (1,404.8) (1,545.5) Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 30
1 Accounting Policies
Basis of preparation
The accounts are prepared under the historical cost convention as modified to include the revaluation of
properties and have been prepared in accordance with applicable accounting standards.
Basis of consolidation
The Group accounts consolidate the accounts of Enterprise Inns plc and all its subsidiary undertakings drawn up
to 30 September each year. No profit and loss account is presented for Enterprise Inns plc as permitted by
Section 230 of the Companies Act 1985.
Undertakings, other than subsidiary undertakings, in which the Group has an investment and over which it is in a
position to exercise a significant influence are treated as associated undertakings. The Group accounts include
the appropriate share of Warwickshire Hotels Limited and The Unique Pub Company Limited results and reserves. 
Interest rate swaps
The Group’s criteria for accounting for interest rate swaps as hedges are:
— the instrument must be related to an asset or a liability; and
— it must change the character of the interest rate by converting a variable rate to a fixed rate or vice versa.
Interest differentials are recognised by accruing with net interest payable. Interest rate swaps are not revalued to
fair value or shown on the Group balance sheet at the year-end. If they are terminated early, the gain or loss is
spread over the remaining maturity of the original instrument.
Goodwill
Goodwill represents the excess of consideration over the fair value of identifiable net assets acquired. Goodwill
arising on acquisitions prior to 1 October 1998 was written off against reserves. Goodwill previously eliminated
against reserves has not been reinstated on implementation of FRS 10. 
Positive goodwill arising on acquisitions since 1 October 1998 is capitalised, classified as an asset on the Balance
Sheet and amortised on a straight-line basis over its useful economic life up to a presumed maximum of 20 years.
It is reviewed for impairment at the end of the first full financial year following the acquisition and in other
periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
If a subsidiary is subsequently sold, any goodwill arising on acquisition that was written off directly to reserves or
that has not been amortised through the Profit and Loss Account is taken into account in determining the profit
or loss on disposal.
Tangible fixed assets and depreciation 
Expenditure on additions and improvements to tangible fixed assets is capitalised as the expenditure is incurred.
Substantially all of the Group’s licensed estate is valued each year reflecting their trading potential on an existing
use basis. Surpluses arising from the professional valuation of the licensed estate are taken direct to the revaluation
reserve. Valuation surpluses realised on sale are transferred from the revaluation reserve to the profit and loss
account reserve. Any deficit arising from the professional valuation of properties is taken direct to the revaluation
reserve until the carrying amount reaches historical cost and, thereafter, to the extent that the value in use can be
demonstrated to be higher than valuation. Any other deficit arising is charged to the profit and loss account.
It is the Group’s policy to maintain the properties comprising the licensed estate in such a condition that the
residual values of the properties, based on prices prevailing at the time of acquisition or subsequent revaluation,
are at least equal to their book values. Having regard to this, it is the opinion of the directors that depreciation of
any such property as required by the Companies Act 1985 and generally accepted accounting practice would not
be material. An annual impairment review is carried out on such properties.
Short leasehold properties, defined as properties with 50 years or less of the lease remaining unexpired, are
depreciated on a straight-line basis over the unexpired lease term. Depreciation is provided on all other
categories of tangible fixed assets over 3 to 5 years on a straight-line basis. Enterprise Inns Annual Report 2003 31
Leasing and hire purchase commitments
Rentals paid under operating leases are charged to the profit and loss account on a straight-line basis over the
lease term.
Assets held for resale
Assets held for resale are stated at the lower of cost incurred and net realisable value. Net realisable value is
based on estimated selling price less further costs expected to be incurred on disposal.
Deferred taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of
timing differences between the treatment of certain items for taxation and accounting purposes.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the
balance sheet date where transactions or events that result in an obligation to pay more, or a right to pay less,
tax in the future have occurred at the balance sheet date, with the following exceptions:
— Provision is made for gains on disposal of fixed assets that have been rolled over into replacement assets
only where, at the balance sheet date, there is a binding commitment to dispose of the replacement assets
with no likely subsequent rollover or available capital losses.
— Provision is made for deferred tax on gains on revalued fixed assets only where there is a commitment to
dispose of the revalued assets and the attributable gain can neither be rolled over or eliminated by capital
losses.
— Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not
that there will be suitable taxable profits from which the future reversal of the underlying timing differences
can be deducted.
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in
which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance
sheet date.
Pensions
The Group makes contributions to employees’ own pension plans in accordance with the terms of their contracts
of employment.
Capital instruments
The finance cost recognised in the profit and loss account in respect of capital instruments other than equity
shares is allocated to periods over the term of the instrument at a constant rate on the carrying amount.
2 Turnover
Turnover represents the amounts derived from the provision of goods and services which fall within the Group’s
ordinary activities, stated net of value added tax.
The Group operates in one principal area of activity, that of a public house landlord. This operation takes place
solely in the United Kingdom.
A substantial proportion of turnover is attributable to rents receivable from the licensed estate. Turnover is
derived as follows:
2003 2002
£m £m
Beer and cider sales 323.4 261.7
Wines, spirits and minerals sales 27.6 21.5
Rents receivable from licensed estate 127.7 82.6
Sales to customers by managed houses 1.9 3.1
480.6 368.9
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003 
Enterprise Inns Annual Report 2003 32
3 Cost of Sales
2003 2002
£m £m
Beer and cider cost of sales 182.0 147.5
Wines, spirits and minerals cost of sales 24.1 18.7
Leasehold charges 4.5 4.5
Cost of sales by managed houses 1.6 3.4
Repairs and maintenance 5.5 7.4
217.7 181.5
4 Exceptional administrative expenses
2003 2002
£m £m
Redundancy and similar costs – 2.6
Management fees relating to the conversion period – 0.3
Termination of contract costs – 3.3
Professional fees – 1.1
Other – 1.2 
– 8.5 
The exceptional administrative expenses incurred in 2002 relate to costs in integrating the operations of 1,860
pubs acquired from Laurel Pub Holdings Limited.
5 Other operating income
2003 2002
£m £m
Property income other than rent from the licensed estate 0.8 0.7
Income from amusement and other machines 20.2 23.3
21.0 24.0
6 Operating profit
(a) This is stated after charging:
2003 2002
£m £m
Auditors’ remuneration — audit fees 0.1 0.2
— non-audit fees 0.2 0.2
Amortisation of goodwill 2.5 0.9
Depreciation of owned fixed assets 0.6 0.9
Amortisation of short leasehold properties 0.8 0.7
Provision against fixed asset investments 1.8 1.2
Operating lease rentals — buildings 3.3 3.3
In addition to the above, £nil (2002 — £0.2m) was paid to the auditors during the year for professional services in
conjunction with the acquisition of Laurel Pub Holdings Limited in May 2002. Enterprise Inns Annual Report 2003 33
6 Operating profit (continued)
(b) Reconciliation of operating profit to net cash inflow from operating activities:
2003 2002
£m £m
Operating profit 254.2 178.7
Depreciation and amortisation 3.9 2.5
Provision against fixed asset investments 1.8 1.2
Decrease/(increase) in debtors 12.0 (1.1)
(Decrease)/increase in creditors (6.3) 0.4
Decrease in assets held for resale 3.4 11.4
Net cash inflow from operating activities 269.0 193.1
Cash outflows in respect of exceptional administrative expenses were £4.4m (2002 — £8.7m).
7 Exceptional items — net profit/(loss) on the disposal of tangible fixed assets
2003 2002
£m £m
Profits on disposal of tangible fixed assets 7.2 8.7
Losses on disposal of tangible fixed assets (4.2) (3.8)
Provision for loss on disposal of fixed assets (2.9) (5.1)
Net profit/(loss) on disposal of tangible fixed assets 0.1 (0.2)
Share of (loss)/profit on disposal of tangible fixed assets in associate (0.2) 0.2
(0.1) –
There is no taxation effect of the exceptional items.
8 Staff costs
2003 2002
£m £m
Wages and salaries 15.6 12.4
Social security costs 2.1 1.6
Other pension costs 1.2 0.9
18.9 14.9
The average monthly number of employees during the year was 375 (2002 — 422). This comprised an average of
360 (2002 — 321) employees of the Company and a number of retail staff in acquired subsidiary undertakings. 
Details of directors’ remuneration are set out on pages 18 to 24.
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 34
9 Interest payable and similar charges
2003 2002
£m £m
Bank loans and overdrafts 48.0 43.8
Debentures/secured bonds 48.0 31.7
Other interest payable and finance costs 0.5 1.2
Amortisation of issue costs and discounts on debt instruments 5.6 3.5
102.1 80.2
Share of interest payable in associate 28.0 14.4
Exceptional finance costs – 7.6
Share of exceptional finance costs in associates – 6.1
– 13.7
The exceptional finance costs incurred during 2002 relate to the write-off of unamortised finance costs following
the refinancing of senior debt facilities upon the acquisition of 1,860 pubs from Laurel Pub Holdings Limited.
10 Taxation
(a) Tax on profit on ordinary activities
The tax charge is made up as follows:
2003 2002
Current tax £m £m
UK corporation tax 25.0 23.0
Share of associate’s current tax (2.5) (0.7)
Adjustments in respect of prior years (4.9) –
Total current tax (note 10b) 17.6 22.3
Deferred tax
Origination and reversal of timing differences (note 21) 25.5 5.9
Share of associate’s deferred tax 5.5 –
Total deferred tax 31.0 5.9
Tax on profit on ordinary activities 48.6 28.2
(b) Factors affecting the tax charge for the year:
2003 2002
£m £m
Group profit on ordinary activities before tax 173.1 92.3
Profit on ordinary activities before tax at 30% (2002 — 30%) 51.9 27.7
Effects of:
Expenses not deductible for tax purposes 2.1 2.7
Tax allowances in excess of depreciation (7.9) (5.9)
Utilisation of tax losses (2.6) (2.2)
Short-term timing differences (21.0) –
Adjustments in respect of prior years (4.9) –
Total current tax charge (note 10a) 17.6 22.3
(c) Factors that may affect future tax charges
Other factors that may affect future tax charges include the availability of accelerated tax depreciation and changes
in legislation. Enterprise Inns Annual Report 2003 35
11 Profit attributable to members of the parent company
The profit after tax dealt with in the accounts of the parent company was £69.5m (2002 — £34.0m). Retained profit
for the year amounted to £40.5m (2002 — £13.5m).
12 Dividends
2003 2002
£m £m
Equity dividends on ordinary shares:
Interim paid 5.7 pence (2002 — 4.7 pence) 9.6 4.5
Final proposed 11.4 pence (2002 — 9.4 pence) 19.4 16.0
29.0 20.5
13 Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on earnings of £124.5m (2002 — £64.1m) and on
168,993,570 (2002 — 137,229,769) shares being the weighted average number of equity shares in issue during the
year after excluding shares held by trusts relating to employee share options. 
Adjusted earnings per share, which reflects the underlying performance of the Group, is based on earnings adjusted
for the effects of exceptional items, net of tax, goodwill amortisation and a one-off tax credit in 2003 of £122.2m
(2002 — £81.0m) and on 168,993,570 (2002 — 137,229,769) shares being the weighted average number of equity
shares in issue during the year after excluding shares held by trusts relating to employee share options. 
Basic earnings are adjusted as follows: 2003 2002
£m £m
Profit after tax 124.5 64.1
Exceptional administrative costs – 8.5
Goodwill amortisation 2.5 0.9
Exceptional finance costs – 13.7
Non-operating exceptional costs 0.1 –
Taxation credit* (4.9) –
Taxation impact of exceptional costs – (6.2)
Adjusted Earnings 122.2 81.0
* a one-off tax credit which has arisen following settlement of prior years’ tax computations.
The diluted earnings per share is based on profit for the year of £124.5m (2002 — £64.1m), and on 170,701,243
(2002 — 138,724,179) ordinary shares, calculated as follows:
2003 2002
Basic weighted average number of shares 168,993,570 137,229,769
Dilutive potential ordinary shares:
Executive share option plan 762,247 599,622
Enterprise Inns Quest sharesave scheme 204,686 241,323
Long-term and short-term incentive plans 740,740 653,465
170,701,243 138,724,179
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 36
14 Intangible fixed assets
Group
Goodwill £m
Cost:
At 1 October 2002 and 30 September 2003 49.7
Amortisation:
At 1 October 2002 (0.9)
Provided during the year (2.5)
At 30 September 2003 (3.4)
Net book value at 30 September 2003 46.3
Net book value at 30 September 2002 48.8
Goodwill arising on the acquisition of The Laurel Pub Group Limited is being amortised evenly over the directors’
estimate of its useful economic life of 20 years.
15 Tangible fixed assets
Licensed premises
Long Short
Freehold leasehold leasehold Other
properties properties properties assets Total
Group £m £m £m £m £m
Cost or valuation:
At 1 October 2002 2,086.0 132.8 16.3 11.2 2,246.3
Reclassification 2.4 (3.6) 1.2 – –
Additions 36.0 1.2 0.5 2.6 40.3
Provision for loss on disposal (2.7) (0.2) – – (2.9)
Revaluations 274.6 8.9 – – 283.5
Fair value review of prior year acquisitions 0.6 (0.5) (0.1) – –
Disposals (36.2) (1.9) – – (38.1)
At 30 September 2003 2,360.7 136.7 17.9 13.8 2,529.1
Depreciation:
At 1 October 2002 – – 2.1 0.8 2.9
Charge for the year – – 0.8 0.6 1.4
At 30 September 2003 – – 2.9 1.4 4.3
Net book value:
At 30 September 2003 2,360.7 136.7 15.0 12.4 2,524.8
At 30 September 2002 2,086.0 132.8 14.2 10.4 2,243.4 Enterprise Inns Annual Report 2003 37
15 Tangible fixed assets (continued)
Licensed premises
Long Short
Freehold leasehold leasehold Other
properties properties properties assets Total
Company £m £m £m £m £m
Cost or valuation:
At 1 October 2002 1,232.6 94.7 13.4 11.1 1,351.8
Reclassifications (0.6) (0.4) 1.0 – –
Additions 32.1 1.0 0.5 2.7 36.3
Assets hived-up from subsidiary
undertakings 852.2 34.6 3.0 – 889.8
Provision for loss on disposal (2.7) (0.2) – – (2.9)
Revaluations 274.6 8.9 – – 283.5
Disposals (27.5) (1.9) – – (29.4)
At 30 September 2003 2,360.7 136.7 17.9 13.8 2,529.1
Depreciation:
At 1 October 2002 – – 2.1 0.8 2.9
Charge for the year – – 0.7 0.6 1.3
Assets hived-up from subsidiary
undertakings – – 0.1 – 0.1
At 30 September 2003 – – 2.9 1.4 4.3
Net book value:
At 30 September 2003 2,360.7 136.7 15.0 12.4 2,524.8
At 30 September 2002 1,232.6 94.7 11.3 10.3 1,348.9
(a) Assets held for use by lessees under operating leases are detailed below. 
Group Company
£m £m
At 30 September 2003
Gross book value 2,383.2 2,383.2
Accumulated depreciation (2.1) (2.1)
Net book value 2,381.1 2,381.1
At 1 October 2002
Gross book value 2,093.5 1,216.7
Accumulated depreciation (1.5) (1.5)
Net book value 2,092.0 1,215.2
(b) With the exception of properties identified for disposal, short leasehold properties and those valued by the
directors, other licensed premises of the Group were valued at their existing use value by Humberts Leisure
Limited, external Chartered Surveyors, as at 30 September 2003. Properties identified for disposal are valued by the
directors at their open market value for sale.
Notes to the Accounts
at 30 September 2003 15 Tangible fixed assets (continued)
The net book value of licensed premises comprises:
Group Company
2003 2002 2003 2002
£m £m £m £m
Licensed estate at valuation:
Freehold properties 2,221.7 897.7 2,221.7 897.7
Long leasehold properties 115.4 49.9 115.4 49.9
Short leasehold properties 2.5 1.9 2.5 1.9
2,339.6 949.5 2,339.6 949.5
Licensed estate at cost:
Freehold properties 138.9 1,188.3 138.9 335.0
Long leasehold properties 21.3 82.9 21.3 44.8
Short leasehold properties 12.6 12.3 12.6 9.3
172.8 1,283.5 172.8 389.1
2,512.4 2,233.0 2,512.4 1,338.6
The historical cost and net book value of the licensed premises included at valuation is as follows:
Group and Company
Long Short
Freehold leasehold leasehold
properties properties properties
£m £m £m
At 30 September 2003 1,864.9 98.3 2.4
At 30 September 2002 821.5 42.9 2.0
16 Investments
Investment in 
Own associated
shares undertaking Loans to
(listed) (unlisted) associates Total
Group £m £m £m £m
Cost:
At 1 October 2002 3.6 16.1 78.5 98.2
Additions 2.1 – 9.7 11.8
Disposals (0.6) – – (0.6)
Transfer to reserves* (0.7) – – (0.7)
Share of profit in associate – 7.8 – 7.8
Share of revaluation of licensed estate in associate – 9.6 – 9.6
Share of actuarial loss recognised in the defined 
benefit pension scheme of associate – (0.4) – (0.4)
At 30 September 2003 4.4 33.1 88.2 125.7
* Cost of shares issued through the Quest sharesave scheme transferred to reserves.
Enterprise Inns Annual Report 2003 38
Notes to the Accounts
at 30 September 2003 16 Investments (continued)
Investment in 
Own associated
shares undertaking Loans to
(listed) (unlisted) associates Total
Provision £m £m £m £m
At 1 October 2002 2.2 – – 2.2
Provision for directors’ entitlements earned
but not crystallising until future years 1.8 – – 1.8
Disposals (0.5) – – (0.5)
At 30 September 2003 3.5 – – 3.5
Net book value:
At 30 September 2003 0.9 33.1 88.2 122.2
Net book value:
At 30 September 2002 1.4 16.1 78.5 96.0
Own Associated Subsidiary
shares under takings undertakings Loans to
(listed) (unlisted) shares associates Total
Company £m £m £m £m £m
Cost:
At 1 October 2002 3.6 0.2 838.3 78.5 920.6
Additions 2.1 – – 9.7 11.8
Disposals (0.6) – (20.3) – (20.9)
Transfer to reserves* (0.7) – – – (0.7)
Transfer to current assets† – – (249.5) – (249.5)
At 30 September 2003 4.4 0.2 568.5 88.2 661.3
* Cost of shares issued through the Quest sharesave scheme transferred to reserves.
† Reclassified against inter-company creditors.
Provision
At 1 October 2002 2.2 – – – 2.2
Provision for directors’
entitlements earned
but not crystallising until
future years 1.8 – – – 1.8
Disposals (0.5) – – – (0.5)
At 30 September 2003 3.5 – – – 3.5
Net book value:
At 30 September 2003 0.9 0.2 568.5 88.2 657.8
Net book value:
At 30 September 2002 1.4 0.2 838.3 78.5 918.4
Details of the investments in which the Group or the Company holds more than 20% (unless indicated) of the
nominal value of any class of share capital are as follows. Due to the large number of bodies now falling within
this criterion, only the undertakings whose results or financial position principally affect the accounts are shown,
as allowed under s231 of the Companies Act. 
Enterprise Inns Annual Report 2003 39
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 40
16 Investments (continued)
Country of Proportion
registration of voting
(or incorporation) rights and Nature of
Name of company and operation Holding shares held business
Subsidiary undertakings:
Indirectly held by Enterprise Inns plc:
Enterprise Pubs Seven Ltd England Ordinary 100% Acquisition and
shares management of freehold
and leasehold licensed
properties
Associated undertakings:
Directly held by Enterprise Inns plc:
The Unique Pub Company Limited England Ordinary 16.8% Management of freehold
shares and leasehold licensed
properties
The investment in own shares comprises Enterprise Inns plc ordinary shares set aside in respect of the Enterprise
Inns Incentive Plan and the Company’s savings related share option scheme. The shares are held either by the
Enterprise Inns Employee Share Trust or by Enterprise Inns QUEST. At 30 September 2003, the number of ordinary
shares held totalled 1,264,518 (2002 — 1,163,723). The cost of investment in own shares in respect of the
Enterprise Inns Incentive Plans is being amortised over the relevant performance period set out within the relevant
plan rules. The market value of Enterprise Inns plc ordinary shares at 30 September 2003 was 932.5 pence per
share, and the market value of this listed investment was £11.8 million.
The dividends attaching to the shares held by the Trust Funds have been waived.
The Unique Pub Company Limited 
Additional disclosures are given in respect of the Company’s investment in The Unique Pub Company Limited as at
30 September 2003 and 2002, which exceeds certain thresholds under FRS 9 ‘Associate and Joint Ventures’. The
disclosures are taken from the unaudited management accounts of The Unique Pub Company Limited as follows:
2003 2003* 2002 2002*
Total Enterprise share Total Enterprise share
100% 16.8% 100% 16.8% 
Balance Sheet £m £m £m £m
Intangible fixed assets (78.9) (13.3) (106.4) (17.9)
Fixed assets 2,271.9 381.7 2,190.1 368.0
Current assets 256.1 40.3 221.3 37.2
Gross assets 2,449.1 408.7 2,305.0 387.3
Liabilities due within one year (55.7) (9.3) (82.9) (13.9)
Liabilities due after more than one year (2,182.5) (366.6) (2,127.7) (357.5)
Gross liabilities (2,238.2) (375.9) (2,210.6) (371.4)
Net assets 210.9 32.8 94.4 15.9 Enterprise Inns Annual Report 2003 41
16 Investments (continued)
2003 2003* 2002 2002*
Total Enterprise share Total Enterprise share
100% 16.8% 100% 16.8% 
Profit and Loss Account £m £m £m £m
Turnover 455.6 76.6 278.0 46.7
Operating profit 228.4 39.0 99.9 16.8
Profit/(loss) before taxation 62.7 10.8 (20.5) (3.5)
Taxation (15.7) (3.0) 4.3 0.7
Profit/(loss) after taxation 47.0 7.8 (16.2) (2.8)
* Enterprise’s share of The Unique Pub Company Limited’s unaudited management accounts for both 2003 and
2002 have been adjusted to reflect changes made for differing accounting policies. Adjustments arising during the
finalisation of Unique’s 2002 statutory financial statements and from the reassessment of the fair value of net
assets acquired have been reflected in the above disclosures as at and for the year ended 30 September 2003.
17 Assets held for resale
Group Company
2003 2002 2003 2002
£m £m £m £m
Fixtures and fittings and
stock purchased from tenants 4.3 7.7 4.3 6.8
18 Debtors
Group Company
2003 2002 2003 2002
£m £m £m £m
Amounts falling due within one year:
Trade debtors 26.6 36.5 26.6 23.8
Amounts owed by subsidiary undertakings – – 25.0 832.3
Other debtors 2.5 2.1 2.5 –
Prepayments and accrued income 7.4 7.5 7.4 4.3
36.5 46.1 61.5 860.4
Amounts falling due after more than one year:
Trade debtors 2.7 4.8 2.7 3.1
Other debtors 0.3 0.4 0.3 0.4
39.5 51.3 64.5 863.9
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 42
19 Creditors: amounts falling due within one year
Group Company
2003 2002 2003 2002
£m £m £m £m
Loans — secured (note 23) 132.6 63.3 135.5 60.0
Loan notes – 0.5 – 0.5
Trade creditors 9.6 11.8 9.6 7.7
Amounts due to subsidiary undertakings – – 687.5 891.8
Corporation tax 25.5 24.2 25.5 20.3
Other creditors including taxation
and social security 37.2 41.1 37.2 34.2
Accruals and deferred income 82.1 66.7 82.1 46.7
Proposed dividend 19.4 16.0 19.4 16.0
306.4 223.6 996.8 1,077.2
20 Creditors: amounts falling due after more than one year
Group Company
2003 2002 2003 2002
£m £m £m £m
Loans (note 23) — secured 426.0 905.0 447.8 875.1
Debentures — secured 850.1 577.6 850.1 577.6
1,276.1 1,482.6 1,297.9 1,452.7
21 Provisions for liabilities and charges
Group Company
Deferred Tax £m £m
At 1 October 2002 48.4 41.8
Deferred tax charge in the profit and loss account 25.5 6.0
Balance transferred on the hive up of subsidiaries – 21.0
Transfer from corporation tax* 2.3 –
At 30 September 2003 76.2 68.8
* reclassification of corporation tax in relation to the Laurel acquisition.
The major components of the amounts provided are as follows:
Group Company
2003 2002 2003 2002
Deferred Tax £m £m £m £m
Accelerated capital allowances 72.0 62.4 72.0 41.8
Short-term timing differences 4.2 (14.0) (3.2) –
Provision for deferred tax 76.2 48.4 68.8 41.8 Enterprise Inns Annual Report 2003 43
21 Provisions for liabilities and charges (continued)
The amounts of deferred tax not provided in the accounts are as follows:
Group Company
2003 2002 2003 2002
£m £m £m £m
Rolled over gains 9.4 8.5 9.4 8.5
No provision has been included in respect of capital gains on the disposal of properties that have already been
deferred, or are expected to be deferred, through the application of capital gains rollover relief into replacement
assets as no liability is expected to arise. The amount not provided for is £9.4 million (2002 — £8.5 million).
No deferred tax has been recognised in respect of the unrealised surplus on the revaluation of fixed assets as
there was no binding commitment to sell the properties at the balance sheet date. The amount not provided for is
estimated at £63 million (2002 — £nil). 
22 Financial Instruments
The Group’s financial instruments, other than derivatives, comprise borrowings and cash. The main purpose of
these financial instruments is to raise finance for the Group’s operations. Details of the Group’s debt facilities are
given on pages 45 to 47. All financial instruments are denominated in Sterling. The disclosures below exclude
short-term debtors and creditors.
The Group also enters into derivatives transactions. The purpose of such transactions is to manage the interest
rate risks arising from the Group’s sources of finance. 
It is, and has been throughout the period under review, the Group’s policy that no speculative trading in financial
instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk and liquidity risk. There is no
currency exposure as all transactions are in Sterling. The Board reviews and agrees policies for managing each of
these risks and they are summarised below.
Interest rate risk
The Group borrows its debenture and bonds at a fixed rate whilst bank debt is borrowed at, and cash balances
attract, interest at a floating rate. This exposure to interest rate risk is reviewed regularly under the Group’s hedging
policy. At the year end 99 per cent of the Group’s borrowings were at fixed interest rates (2002 — 74 per cent). 
The interest rate profile of financial liabilities of the Group at 30 September 2003 was as follows:
Fixed rate Floating rate
financial financial
Total liabilities liabilities
£m £m £m
2003
Sterling 1,395.0 1,385.0 10.0
2002
Sterling 1,530.5 1,135.0 395.5
2003 2002
£m £m
Book value of fixed rate financial liabilities 1,385.0 1,135.0
Weighted average period of fixed interest rate financial liabilities 15.7 years 16.8 years
Weighted average interest rate of fixed rate financial liabilities 6.87% 6.95%
The amounts stated above are shown gross of issue costs, discounts, premiums and exclude the swap.
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 44
22 Financial Instruments (continued)
Liquidity risk
As regards liquidity, the Group’s policy is to maintain a balance between continuity of funding and flexibility
through the use of overdrafts, bank loans, a debenture and secured bonds. At the year-end, 60 per cent. of the
Group’s borrowings were due to mature in more than five years. Maturity of the Group’s funding structure is
reviewed throughout the year.
The fair values of financial assets and liabilities are as follows:
2003 2003 2002 2002
Book Value Fair Value Book Value Fair Value
£m £m £m £m
Senior Debt and Loan Notes (560.0) (560.0) (945.5) (945.5)
Debenture — issued 3 February 1999
(less discounts) (59.5) (55.9) (59.4) (56.7)
Secured bond — issued 9 May 2000
(less discounts) (125.1) (134.4) (125.0) (129.0)
Secured bond — issued 15 February 2001
(less discounts) (124.2) (134.8) (124.1) (130.4)
Secured bond — issued 26 February 2002
(less discounts) (274.0) (284.0) (273.9) (270.1)
Secured bond — issued 3 March 2003
(less discounts) (247.6) (261.1) ––
Cash 3.9 3.9 0.9 0.9
Interest rate caps – – (0.1) –
Loans to Associates 88.2 88.2 75.2 75.2
Subtotal (1,298.3) (1,338.1) (1,451.9) (1,455.6)
£550m interest rate swap expiring 1 June 2012 (29.8) (70.2) (33.1) (68.7)
(1,328.1) (1,408.3) (1,485.0) (1,524.3)
Book value and fair value are both stated gross of unamortised issue costs. See note 23 (a).
Gains and losses on instruments used for hedging are not recognised until the exposure that is being hedged
itself is recognised. The unrecognised loss on financial instruments used for hedging at 30 September 2003 is
£40.4m (2002 — £35.6m). 
The unrecognised loss is expected to be realised in the Profit and Loss Account over the lives of the relevant
financial instruments. The amount expected to be realised in less than one year is £6.5m. The remaining £33.9m
will be realised in a period greater than one year.  Enterprise Inns Annual Report 2003 45
23 Loans
Group and Company
2003 2002
£m £m 
(a) Details of loans are as follows:
Senior debt finance
Revolving loan repayable in full on 23 May 2007. Interest is payable at LIBOR
(plus mandatory costs) plus a margin which is capped at 1.8%. The Company 
is currently paying a margin of 155 basis points. 150.0 145.0
Term loan repayable by six-monthly instalments, the first instalment was paid on
31 March 2003. The instalments vary over the period of the loan but result in
repayment by 23 May 2007. Interest is payable at LIBOR (plus mandatory costs)
plus a margin which is capped at 1.8%. The Company is currently paying a margin 
of 155 basis points. 310.0 400.0
Term loan repaid in full on 7 March 2003. – 200.0
Term loan repayable in full on 31 March 2004 but with an option to extend the
repayment date to 30 September 2004. Interest is payable at LIBOR (plus mandatory
costs) plus a margin which is capped at 1.8%. The Company is currently paying a 
margin of 155 basis points. 100.0 200.0
560.0 945.0
Senior debt issue costs (4.8) (9.5)
555.2 935.5
Loan notes — unsecured repaid at par on 30 September 2003. – 0.5
6% debenture repayable by 3 February 2014 60.0 60.0
Discount on the issue of debenture (0.5) (0.6)
Debenture issue costs (0.5) (0.5)
6.875% secured bonds repayable on 9 May 2025 125.0 125.0
Premium on the issue of bonds 0.1 0.1
Secured bonds issue costs (1.0) (1.2)
6.875% secured bonds repayable on 15 February 2021 125.0 125.0
Discount on the issue of bonds (0.8) (0.9)
Secured bonds issue costs (1.0) (1.1)
6.375% secured bonds repayable on 26 September 2031 275.0 275.0
Discount on the issue of bonds (1.0) (1.1)
Secured bonds issue costs (2.3) (2.4)
6.5% secured bonds repayable on 6 December 2018 250.0 –
Discount on the issue of bonds (2.4) –
Secured bonds issue costs (1.9) –
Total loans before interest rate swap 1,378.9 1,513.3
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 46
23 Loans (continued)
Group Company
2003 2002 2003 2002
£m £m £m £m
Total loans before interest rate swap 1,378.9 1,513.3 1,378.9 1,513.3
£550m interest rate swap expiring on 1 June 2012
Coupon 5.75% until December 2004, 
thereafter 6.66% until 1 June 2012 29.8 33.1 54.5 –
1,408.7 1,546.4 1,433.4 1,513.3
The debenture issued on 3 February 1999 is secured by fixed charges over 305 properties created in a trust deed
dated 3 February 1999.
The secured bonds issued on 9 May 2000 are secured by fixed charges over 567 properties created in a trust deed
dated 9 May 2000.
The secured bonds issued on 15 February 2001 are secured by fixed charges over 384 properties created in a trust
deed dated 15 February 2001.
The secured bonds issued on 26 February 2002 are secured by fixed charges over 834 properties created in a trust
deed dated 26 February 2002.
The secured bonds issued on 3 March 2003 are secured by fixed charges over 503 properties created in a trust
deed dated 3 March 2003.
The senior loan is secured by a security deed dated 23 May 2002 entered into by substantially all the companies
which comprise the Group giving the lenders a floating charge over all of the assets and undertakings of such
Group companies (whatsoever and wheresoever both present and future). The floating charge ranks subsequent to
the fixed charges created by the debenture and the secured bonds.
(b) Amounts at 30 September 2003 (including overdrafts) fall due as follows:
Group Company
2003 2002 2003 2002
£m £m £m £m
In more than five years 836.4 593.3 846.6 577.2
In more than two years but not more than five years 377.2 430.8 385.9 420.6
In more than one year but not more than two years 62.5 458.5 65.4 455.1
In one year or less, or on demand 132.6 63.8 135.5 60.4
Total 1,408.7 1,546.4 1,433.4 1,513.3
(c) Details of undrawn committed borrowing facilities available at 30 September 2003 are as follows:
2003 2002
Group and Company £m £m
Expiring after two years but not more than five years 50.0 55.0
50.0 55.0
Derivatives — other financial instruments
The Group’s principal financial instruments, other than derivatives, comprise bank loans, a debenture and secured
bonds. The Group has entered into derivative transactions to manage the interest rate risks arising from the Group’s
operations and its sources of finance.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments
shall be undertaken. Enterprise Inns Annual Report 2003 47
23 Loans (continued)
(d) Interest rate hedging arrangements:
The Group is party to three interest rate cap agreements and one swap agreement:
A cap of 8% on £5m for a term of seven years ending on 31 December 2003.
A cap of 8% on £3m for the term of six years nine months ending on 31 March 2004.
A cap of 8.25% on £6m for the term of seven years three months ending on 30 September 2004.
A swap of £550 million fixed at 5.75% until 1 December 2004 and thereafter fixed at 6.66% from 2 December 2004
until 1 June 2012.
24 Share capital 
Allotted, Allotted,
called up and called up and
Authorised fully paid Authorised fully paid
2003 2003 2002 2002
No. £m No. £m
Ordinary Shares of 10p each 250,000,000 17.0 250,000,000 17.0
The total number of allotted, called up and fully paid shares at 30 September 2003 was 170,424,989 (2002 —
169,747,478). 
Under the Executive Share Option Scheme 560,797 shares were issued at an average price of £2.35 per share.
The Group gifted 116,714 shares to the Quest at an average price of £9.10 per share.
The Company has two share option schemes under which options to subscribe for the Company’s shares have been
granted to certain directors and employees. At 30 September 2003 the following options were outstanding:
Number Subscription
of shares Exercise Date price (£)
Executive Share Option Scheme 10,286 Between 26/11/99 and 26/11/06 1.75
Executive Share Option Scheme 8,797 Between 18/12/00 and 18/12/07 1.91
Executive Share Option Scheme 49,155 Between 17/12/01 and 17/12/08 2.80
Executive Share Option Scheme 102,624 Between 14/12/02 and 14/12/09 3.25
Executive Share Option Scheme 400,312 Between 18/12/03 and 18/12/10 3.40
Executive Share Option Scheme 692,586 Between 11/12/04 and 11/12/11 5.16
Executive Share Option Scheme 930,250 Between 16/12/05 and 16/12/12 5.61
Savings Related Share Option Scheme 10,094 Between 01/02/05 and 01/08/05* 1.54
Savings Related Share Option Scheme 50,335 Between 01/02/04 and 01/08/06 2.03
Savings Related Share Option Scheme 56,840 Between 01/02/05 and 01/08/07 2.81
Savings Related Share Option Scheme 103,289 Between 01/02/06 and 01/08/08 2.49
Savings Related Share Option Scheme 70,887 Between 01/02/07 and 01/08/09 4.19
Savings Related Share Option Scheme 175,898 Between 01/02/08 and 01/08/10 4.64
* Options relate to a seven year savings contract and become exercisable during 2005 only.
Options have been adjusted, where appropriate, to take account of rights issues. Such adjustments have been
approved by the Inland Revenue.
The SAYE scheme is Inland Revenue approved and the Company has taken advantage of the exemption from
applying UITF17 (revised).
Directors’ contingent rights to shares are shown in the report on Directors’ Remuneration on pages 18 to 24.
Notes to the Accounts
at 30 September 2003 Notes to the Accounts
at 30 September 2003
Enterprise Inns Annual Report 2003 48
25 Reserves
Share Capital Profit
premium Revaluation redemption Merger and loss
account reserve reserve reserve account
Group £m £m £m £m £m
At 1 October 2002 432.3 101.6 7.6 77.0 58.0
Transfer of realised revaluation deficit – 7.6 – – (7.6)
Retained profit for the year –––– 95.5
Cost of shares issued through the Quest 
sharesave scheme* –––– (1.9)
Share of actuarial loss recognised in the 
defined benefit pension scheme of associate–––– (0.4)
Premium on issue of shares 2.5 ––––
Surplus on revaluation of estate – 283.5 – – –
Share of associate surplus on
revaluation of estate* – 9.6 – – –
At 30 September 2003 434.8 402.3 7.6 77.0 143.6
* This is stated gross of a transfer of £0.7m from investments relating to to a prior year issue of shares through the
Quest Sharesave Scheme.
The cumulative amount of goodwill written off to reserves at 30 September 2003 is as follows:
2003 2002
£m £m
Positive goodwill 9.8 9.8
Negative goodwill (7.4) (7.4)
2.4 2.4
Share Capital Profit
premium Revaluation redemption and loss
account reserve reserve account
Company £m £m £m £m
At 1 October 2002 432.3 83.1 7.6 27.2
Transfer of realised revaluation deficit – 7.6 – (7.6)
Retained profit for the year – – – 40.5
Cost of shares issued through the Quest 
sharesave scheme – – – (1.9)
Premium on issue of shares 2.5 – – –
Surplus on revaluation of estate – 283.5 – –
At 30 September 2003 434.8 374.2 7.6 58.2 Enterprise Inns Annual Report 2003 49
26 Reconciliation of movements in shareholders’ funds
2003 2002
£m £m
Total recognised gains and losses 417.2 96.3
Dividends (29.0) (20.5)
388.2 75.8
New share capital subscribed – 7.3
Premium on issue of shares 2.5 287.3
Cost of shares issued through the Quest sharesave scheme (1.9) –
Net addition to shareholders’ funds 388.8 370.4
Opening shareholders’ funds 693.5 323.1
Closing shareholders’ funds 1,082.3 693.5
27 Notes to the statement of cash flows
At Other At
1 October non-cash 30 September
2002 Cash flow movements 2003
Analysis of net debt £m £m £m £m
Cash at bank and in hand 0.9 3.0 – 3.9
Cash 0.9 3.0 – 3.9
Short-term loans (63.8) (69.5) 0.7 (132.6)
Long-term loans (1,482.6) 209.5 (3.0) (1,276.1)
(1,545.5) 143.0 (2.3) (1,404.8)
28 Capital commitments
Amounts contracted for but not provided in the accounts amounted to £3.5m (2002 — £3.1m) for the Group and
Company. 
29 Other financial commitments
At 30 September 2003 the Company had annual commitments under non-cancellable operating leases as set
out below:
Land and Buildings
2003 2002
£m £m
Operating leases which expire:
within one year 0.1 0.3
within two to five years 0.4 0.3
in over five years 2.5 2.6
3.0 3.2
Notes to the Accounts
at 30 September 2003 Report of the Auditors
Enterprise Inns Annual Report 2003 50
Report of the Auditors to the members of Enterprise Inns plc
We have audited the Group’s financial statements for the year ended 30 September 2003 which comprise the Group
Profit and Loss Account, Group Statement of Total Recognised Gains and Losses, Note of Historical Cost Profits and
Losses, Group Balance Sheet, Balance Sheet, Group Statement of Cash Flows and the related notes 1 to 29. These
financial statements have been prepared on the basis of the accounting policies set out therein. We have also
audited the information in the Report on Directors’ Remuneration that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the Company’s members those matters we
are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ are responsible for preparing the Annual Report, including the financial statements which are required
to be prepared in accordance with applicable United Kingdom law and accounting standards as set out in the
Statement of Directors’ Responsibilities in relation to the financial statements.
Our responsibility is to audit the financial statements and the part of the Report on Directors’ Remuneration to be
audited in accordance with relevant legal and regulatory requirements, United Kingdom Auditing Standards and the
Listing Rules of the Financial Services Authority.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the
financial statements and the part of the Report on Directors’ Remuneration to be audited have been properly
prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ Report is
not consistent with the financial statements, if the Company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if the information specified by law or the
Listing Rules regarding directors’ remuneration and transactions with the Group is not disclosed. 
We review whether the Corporate Governance Statement reflects the Company’s compliance with the seven
provisions of the Combined Code specified for our review by the Listing Rules, and we report if it does not. We are
not required to consider whether the Board’s statements on internal control cover all risks and controls, or form an
opinion on the effectiveness of the Group’s corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements. This other information comprises the Financial Highlights, Directors and Advisers, Chairman’s
Statement, Chief Executive’s Review, Finance Director’s Report, Directors’ Report, Corporate Governance Statement,
the unaudited part of the Report on the Directors’ Remuneration, Five Year Record and Notice of Meeting. We
consider the implications for our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities do not extend to any other information. 
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial
statements and the part of the Report on the Directors’ Remuneration to be audited. It also includes an assessment of the
significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether
the accounting policies are appropriate to the Group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements and
the part of the Report on Directors’ Remuneration to be audited are free from material misstatement, whether caused by
fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of
information in the financial statements and the part of the Report on Directors’ Remuneration to be audited.
Opinion
In our opinion:
 the financial statements give a true and fair view of the state of affairs of the Company and of the Group at
30 September 2003 and of the profit of the Group for the year then ended; and
 the financial statements and the part of the Report on Directors’ Remuneration to be audited have been properly
prepared in accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
Birmingham
25 November 2003 Five Year Record
Enterprise Inns Annual Report 2003 51
Consolidated Profit and Loss Accounts
Year ended 30 September
2003 2002 2001 2000 1999
£m £m £m £m £m
Turnover 480.6 368.9 245.4 172.1 123.6
Operating Profit 254.2 178.7 84.8 70.2 47.9
Profit on ordinary activities before tax 173.1 92.3 40.7 44.1 31.4
Profit after tax 124.5 64.1 26.3 30.2 15.6
Profit retained for the period 95.5 43.6 15.2 21.3 7.0
Adjusted earnings per share (pence)* 72.3 59.0† 39.5 31.5 19.0
* excludes exceptional items, goodwill amortisation and a one-off tax credit in 2003.
† restated to exclude goodwill amortisation
Consolidated Balance Sheets 
Fixed assets 2,693.3 2,388.2 1,323.9 717.4 567.9
Current assets 47.7 59.9 62.4 41.2 35.9
Creditors due within one year (306.4) (223.6) (137.2) (83.4) (78.1)
Total assets less current liabilities 2,434.6 2,224.5 1,249.1 675.2 525.7
Creditors due after more than one year (1,352.3) (1,531.0) (926.0) (445.7) (307.5)
Net assets 1,082.3 693.5 323.1 229.5 218.2 Analysis of Ordinary Shareholders
Enterprise Inns Annual Report 2003 52
Number of Shares
Range Shareholders % Held %
1–1000 813 40.4 362,457 0.2
1001–10,000 720 35.8 2,225,321 1.3
10,001–50,000 210 10.4 5,067,692 3.0
50,001–100,000 78 3.9 5,790,216 3.4
100,001–150,000 32 1.6 3,996,120 2.3
150,001–500,000 96 4.8 26,691,818 15.7
500,001–1,000,000 29 1.4 20,291,140 11.9
1,000,001–5,000,000 31 1.5 79,328,510 46.5
5,000,001 and over 4 0.2 26,671,715 15.7
2,013 100.0 170,424,989 100.0
Financial Calendar
Interim Final
Announcement of results and ordinary dividend declaration May November
Interim statement and report and accounts posted to shareholders May December
On record for dividends June December
Annual General Meeting January
Dividend payment July January Notice of Meeting
Enterprise Inns Annual Report 2003 53
The Annual General Meeting of Enterprise Inns plc
(the “Company”) will be held at the offices of the
Company, 3 Monkspath Hall Road, Solihull, West
Midlands, B90 4SJ at 11.00 a.m. on Thursday 22
January 2004 for the following purposes:
Ordinary Resolutions
To consider and, if thought fit, to pass the following
resolutions which will be proposed as ordinary
resolutions:
1. To receive the Directors’ Report and the audited
accounts for the year ended 30 September 2003 and
the auditors’ report on the accounts.
2. To declare a final dividend.
3. To reappoint Mr D A Harding as a director of the
Company.
4. To reappoint Mr M F Garner as a director of the
Company.
5. To reappoint Mr W S Townsend as a director of the
Company.
6. To reappoint Ernst & Young LLP as auditors and to
authorise the directors to fix the remuneration of the
auditors.
7. To approve the Report on the Directors’ Remuneration
for the year ended 30 September 2003.
8. THAT, subject to Admission, each of the issued and
unissued ordinary shares of 10 pence each in the
capital of the Company be sub-divided into 2
ordinary shares of 5 pence each.
For the purposes of this resolution:
“Admission and Disclosure Standards” means the
requirements contained in the publication
“Admission and Disclosure Standards” containing,
inter alia, the admission requirements to be
observed by companies seeking admission to trading
on the market for listed securities of London Stock
Exchange plc;
“Admission” means the admission of the new
ordinary shares of 5 pence each to the Official List of
the United Kingdom Listing Authority and to trading
on the market for listed securities of London Stock
Exchange plc becoming effective in accordance with,
respectively, the Listing Rules and the Admission
and Disclosure Standards; and
“Listing Rules” means the listing rules of the United
Kingdom Listing Authority made under section 74 of
the Financial Services and Markets Act 2000, as
amended from time to time.
9. THAT the directors be generally and unconditionally
authorised (in substitution for all subsisting
authorities to the extent unused) pursuant to and in
accordance with section 80 of the Companies Act
1985 (the “Act”) to allot relevant securities (as
defined in that section) up to an aggregate nominal
value of £5,680,832.
This authority shall expire, unless previously
renewed, revoked or varied by the Company in
general meeting, 15 months after the date of the
passing of this resolution, or, if earlier, at the
conclusion of the Annual General Meeting of the
Company in 2005, except that the Company may at
any time before such expiry make any offer or
agreement which would or might require relevant
securities to be allotted after such expiry and the
directors may allot relevant securities in pursuance
of any such offer or agreement as if the authority
conferred by this resolution had not expired.
Special Resolutions
To consider and, if thought fit, to pass the following
resolutions which will be proposed as special
resolutions:
10. THAT the directors be empowered pursuant to
section 95 of the Act to allot equity securities (as
defined in section 94(2) of the Act) for cash pursuant
to the general authority conferred on them by
resolution 9 or to sell equity securities held as
treasury shares for cash pursuant to section 162D of
the Act, or partly in one way and partly in the other,
in each case as if section 89(1) of the Act did not
apply to any such allotment or sale, provided that
this power shall be limited to:
(a) any such allotment and/or sale of equity
securities in connection with an issue or offer by
way of rights or other pre-emptive issue or offer,
open for acceptance for a period fixed by the
directors, to holders of ordinary shares on the Enterprise Inns Annual Report 2003 54
Notice of Meeting 
register on any record date fixed by the directors
in proportion (as nearly as may be) to the
respective number of ordinary shares deemed to
be held by them, subject to such exclusions or
other arrangements as the directors may deem
necessary or expedient in relation to fractional
entitlements, legal or practical problems arising
in any overseas territory, the requirements of any
regulatory body or stock exchange or any other
matter whatsoever; and
(b) any such allotment and/or sale, otherwise than
pursuant to subparagraph (a) above, of equity
securities having, in the case of relevant shares
(as defined in section 94(5) of the Act), an
aggregate nominal value, or, in the case of other
equity securities, giving the right to subscribe for
or convert into relevant shares having an
aggregate nominal value, not exceeding in
aggregate the sum of £852,124.
This authority shall expire, unless previously
renewed, revoked or varied by the Company in
general meeting, at such time as the general
authority conferred on the directors by resolution 9
expires, except that the Company may at any time
before such expiry make any offer or agreement
which would or might require equity securities to be
allotted or equity securities held as treasury shares
to be sold after such expiry and the directors may
allot equity securities and/or sell equity securities
held as treasury shares in pursuance of such an offer
or agreement as if the power conferred by this
resolution had not expired.
11. THAT the Company be generally and unconditionally
authorised to make market purchases (as defined in
section 163 (3) of the Act) of:
(a) (if resolution 8 is passed) its ordinary shares of 5
pence each provided that:
(i) the maximum number of ordinary shares of 5
pence each which may be acquired is
51,093,410; and
(ii) the minimum price per share which may be
paid for any such share is 5 pence; or
(b) (if resolution 8 is not passed) its ordinary shares
of 10 pence each provided that:
(i) the maximum number of ordinary shares of
10 pence each which may be acquired is
25,546,705; and
(ii) the minimum price per share which may be
paid for any such share is 10 pence; 
provided always that the maximum price per share
which may be paid for any such ordinary share of 5
pence or 10 pence, as the case may be, is an
amount equal to 105 per cent. of the average of the
middle-market quotation for such a share (adjusted,
to the extent necessary, to reflect the passing of
resolution 8) according to the Daily Official List of
London Stock Exchange plc for the five business
days immediately preceding the day on which the
purchase is made. 
This authority shall expire, unless previously
renewed, revoked or varied by the Company in
general meeting, 15 months after the date of
passing of this resolution or, if earlier, at the
conclusion of the Annual General Meeting of the
Company in 2005, except that the Company may at
any time before such expiry enter into a contract to
purchase ordinary shares which would or might be
executed wholly or partly after such expiry and
purchase ordinary shares in accordance with such
contract as if the authority conferred by this
resolution had not expired.
12. THAT the articles of association, a copy of which is
produced to the Meeting and signed by the
Chairman of the meeting for the purpose of
identification, be adopted as the articles of
association of the Company in substitution for and to
the exclusion of the existing articles of association
of the Company. 
The directors believe that the proposals in
resolutions 1 to 12 are in the best interests of
shareholders as a whole and they unanimously
recommend that you vote in favour of all the
resolutions.
By order of the Board Registered Office:
D C George 3 Monkspath Hall Road
Secretary Solihull
25 November 2003 West Midlands
B90 4SJ 
Registered No. 2562808 Enterprise Inns Annual Report 2003 55
To Birmingham
To Solihull
Approx
1/2 mile
A34
J4 J5 J6
M42
To Stratford-
upon-Avon
Enterprise Inns plc
3 Monkspath Hall Road
M42
M40
To London
South
Birmingham
International Airport
& Railway Station
NEC
Light refreshments (tea, coffee and biscuits) will be
available prior to the meeting.
Notes
1. A shareholder entitled to attend and vote at the
Annual General Meeting may appoint one or more
proxies to attend and, on a poll, vote instead of
him. A proxy need not be a shareholder of the
Company.
2. A form of proxy for use in connection with the
Annual General Meeting is set out at the end of
the document of which this notice forms part.
Completion and return of a form of proxy will not
preclude a shareholder from attending and voting
at the Annual General Meeting.
3. To appoint a proxy or proxies shareholders must
complete a form of proxy, sign it and return it,
together with any power of attorney or other
authority (if any) under which it is signed, or a
notarially certified copy of such authority, to the
Company’s registrars, Computershare Investor
Services PLC, Registrar’s Department, PO Box
1075, The Pavilions, Bridgwater Road, Bristol,
BS99 3FA, so that it is received no later than
11.00 a.m. on Tuesday 20 January 2004. 
4. The Company, pursuant to Regulation 41 of the
Uncertificated Securities Regulations 2001,
specifies that only those shareholders registered
on the Company’s share register at 6.00 p.m. on
20 January 2004 shall be entitled to attend the
Annual General Meeting and vote in respect of
the number of shares registered in their names at
that time. Changes to entries on the share
register after 6.00 p.m. on 20 January 2004 shall
be disregarded in determining the rights of any
person to attend or vote at the Annual General
Meeting.
5. Copies of the directors’ service contracts, the
directors’ remuneration report, biographical
information of the directors seeking
reappointment and the register of directors’
interest are available for inspection at the
Company’s registered office during normal
business hours on any weekday (excluding
Saturdays, Sundays and public holidays) and will
also be available for inspection at the place of the
Annual General Meeting for at least 15 minutes
before and during the Annual General Meeting.
6. Copies of the Company’s existing articles of
association and the articles of association
proposed to be adopted pursuant to resolution 12
are available for inspection at the Company’s
registered office and at the offices of CMS
Cameron McKenna, 160 Aldersgate Street,
London, EC1A 4DD during normal business hours
on any weekday (excluding Saturdays, Sundays
and public holidays) from the date of this notice
until close of business on 22 January 2004 and
will also be available for inspection at the place
of the Annual General Meeting for at least 15
minutes before and during the Annual General
Meeting.
Notice of Meeting  Enterprise Inns Annual Report 2003 56
Explanatory notes to the Notice of
Annual General Meeting
The notice of the Annual General Meeting of Enterprise
Inns plc to be held on Thursday 22 January 2004 is set
out on pages 53 to 55. The following notes provide an
explanation as to why the resolutions set out in the
notice are to be put to shareholders.
Resolutions 1 to 9 are ordinary resolutions. These
resolutions will be passed if more than 50 per cent.
of the votes cast are in favour.
Resolution 1
— Laying of the accounts
The Companies Act 1985 (the “Act”) requires that, for
each financial year, the directors lay the Company’s
annual accounts, the directors’ report and the auditors’
report before a general meeting of the Company.
Resolution 2
— Declaration of a final dividend
An interim dividend of 5.7 pence (net) has already been
paid in respect of the 2002/2003 financial year. The
directors are recommending a final dividend of 11.4
pence (net) per ordinary share of 10 pence, payable on
26 January 2004 to shareholders on the register as at
close of business on 30 December 2003. The final
dividend will not be paid without shareholder approval.
For the avoidance of doubt, the final dividend will not be
paid to those persons that are holders of ordinary shares
of 5 pence each at the date of payment in respect of
their shareholdings on the payment date. It will be paid
to those persons that were recorded on the register at
close of business on 30 December 2003 as holders of
ordinary shares of 10 pence each in respect of their
respective holdings at close of business on 30 December
2003.
Resolution 3 
— Reappointment of Mr D A Harding
The Company’s articles of association require that all
directors appointed by the Board since the previous
Annual General Meeting must be reappointed by the
shareholders of the Company. Mr D A Harding was
appointed by the Board on 6 November 2003 and is
therefore standing for reappointment by the
shareholders at the Annual General Meeting.
Biographical information for Mr D A Harding is included
in the annual report and accounts.
Resolutions 4 and 5
— Reappointment of Mr M F Garner and Mr W S
Townsend
The Company’s articles of association require that one-
third of the directors retire each year, although they may
offer themselves for reappointment by the shareholders
of the Company. Accordingly, Mr M F Garner and Mr W S
Townsend are retiring and seeking reappointment.
Biographical information for Mr M F Garner and Mr W S
Townsend is included in the annual report and accounts.
Resolution 6
— Auditors
The Act requires that auditors be appointed at each
general meeting of the Company before which accounts
are laid. Accordingly, the Company’s auditors, Ernst &
Young LLP, are seeking reappointment and the directors
are seeking authority to determine the amount of the
auditors’ fees.
Resolution 7
— Remuneration Report
The Act requires the Company to seek shareholder
approval at its Annual General Meeting for the directors’
remuneration report for the year. The directors’
remuneration report is included in the annual report and
accounts.
Resolution 8
— Sub-division of ordinary share capital
This resolution, if passed, will sub-divide each of the
ordinary shares of 10 pence in the Company into 2
ordinary shares of 5 pence each. The directors believe
that having a larger number of shares with a lower
market value should attract and retain larger numbers of
private shareholders and ensure the continuing liquidity
of the Company’s shares.
The financial position of the Company will not be
affected by the sub-division of the ordinary shares of 10
pence each. The sub-division will not reduce the
Company’s assets, liabilities or shareholders’ funds. The
Company’s authorised and issued share capital will
remain of the same amount. Each shareholder will hold
the same percentage interest in the issued share capital
of the Company immediately after the sub-division
becomes effective as that shareholder held immediately
before the sub-division became effective. The new
ordinary shares of 5 pence each will, in all respects,
carry the same rights as the existing ordinary shares of
10 pence each.
If resolution 8 is passed, application will be made for the
admission of the new ordinary shares of 5 pence each to
the Official List of the UK Listing Authority and for their
admission to trading on the market for listed securities
of London Stock Exchange plc. Dealings in the new Enterprise Inns Annual Report 2003 57
Explanatory notes to the Notice of
Annual General Meeting
ordinary shares of 5 pence each are expected to
commence on 23 January 2004. At that time the
Company’s former ordinary shares of 10 pence each will
be removed from the Official List of the United Kingdom
Listing Authority and no longer traded.
For holdings in uncertificated form, it is expected that
the appropriate share accounts in CREST will be credited
with shareholders’ entitlements to the new ordinary
shares with effect from 23 January 2004. For holdings in
certificated form, new share certificates will be sent to
shareholders (at their own risk) as soon as practicable
after 23 January 2004. Certificates for the former
ordinary shares of 10 pence will cease to be valid upon
the issue of the new share certificates; they should be
destroyed or, at the Company’s request, delivered to the
Company or as it may direct.
In accordance with the rules of the Enterprise Executive
Share Option Scheme, the Enterprise Savings-Related
Share Option Scheme, the Enterprise Incentive Plan and
the Enterprise Incentive Plan 2002 (together the “Share
Schemes”), the directors may, if appropriate, make
adjustments to the number of ordinary shares comprised
in each outstanding option and the price at which such
options are exercisable. In the case of Inland Revenue
approved share options, such adjustments will be subject
to United Kingdom Inland Revenue approval. Option
holders will be informed of the adjustments in
accordance with the terms of the Share Schemes. In the
case of the Enterprise Incentive Plan and the Enterprise
Incentive Plan 2002, the remuneration committee is
empowered to adjust the number of ordinary shares
comprised in any incentive after it has vested in any
manner that it deems appropriate to counteract the
effect of the proposed sub-division on the value of the
incentive. The Company’s auditors must confirm in
writing that any such adjustment is fair and reasonable
before it is implemented.
Resolution 9
— Authority to the directors to allot shares
Under the Act the directors of a company may only allot
shares if authorised to do so. If passed, this resolution
will authorise the directors to issue shares up to an
aggregate nominal value of £5,680,832, which is equal
to approximately one-third of the current issued share
capital of the Company. Passing this resolution will
continue the directors’ flexibility to act in the best
interests of shareholders, when opportunities arise, by
issuing new shares. 
Resolutions 10 to 12 are special resolutions. These
resolutions will be passed if not less than 75
per cent. of the votes cast are in favour.
Resolution 10
— Disapplication of statutory pre-emption rights
Under changes to the Act that came into force on
1 December 2003, shares purchased out of distributable
profits by the Company pursuant to resolution 11, but
not exceeding 10 per cent. of its issued share capital,
may be held “in treasury” (for later sale, cancellation or
transfer to an employee share scheme) instead of being
cancelled immediately. Shares held in treasury can be
held indefinitely pending, for example, a suitable time to
place them back on the market. This will enable the
Company to sell shares held in treasury to take
advantage of capital growth in its own shares. While
held in treasury, shares will not receive dividends and
have no voting rights. Sales of treasury shares must be
for cash and are subject to statutory pre-emption rights. 
This resolution contains an authority for the directors to
allot shares and/or to sell shares held in treasury,
without regard to the statutory pre-emption rights in
relation to offers of equity securities. The authority is
limited to 5 per cent. of the aggregate nominal value of
the current issued share capital of the Company. The
directors consider this necessary in order to give them
flexibility to deal with opportunities as they arise,
subject to the restrictions contained in this resolution.
Resolution 11
— Purchase of own shares by the Company
This resolution grants the Company authority for a
period of up to 18 months to buy its own shares in the
market. It limits the number of shares that may be
purchased to 14.99 per cent. of its issued share capital
and sets minimum and maximum prices. This authority
will only be exercised if market conditions make it
advantageous to do so. 
Instead of immediately cancelling them, the Company
may decide to hold shares purchased pursuant to this
authority (to the extent statutory requirements are met
and provided they do not exceed 10 per cent. of the
Company’s issued share capital) in treasury for future
cancellation, sale for cash, or (provided Listing Rule
Requirements are met) transfer to an employee share
plan, although they may be cancelled immediately on
repurchase in the light of circumstances at the time. The
effect of any cancellation would be to reduce the
number of shares in issue, and for most purposes while Enterprise Inns Annual Report 2003 58
Explanatory notes to the Notice of
Annual General Meeting 
held in treasury shares are treated as if they have been
cancelled (for example they carry no voting rights and
do not rank for dividends). Accordingly, the directors will
only make purchases under this authority after
considering the effect on earnings per share and the
benefits for shareholders generally.
Resolution 12
— Adoption by the Company of the new articles of
association
To ensure that the Company’s constitutional documents
comply with recent developments in company law and
best practice and that the references in them remain
current, the directors consider it necessary to update the
Company’s articles of association. The existing articles
were adopted on 24 October 1995 and have not been
amended since that date. The principal differences
between the Company’s existing articles of association
and the articles of association proposed to be adopted
pursuant to this resolution (the “New Articles”) are
explained below. 
Copies of the Company’s existing articles of association
and the New Articles are available for inspection during
normal business hours on any weekday (Saturdays,
Sundays and public holidays excepted) at the Company’s
registered office and at the offices of CMS Cameron
McKenna, Mitre House, 160 Aldersgate Street, London,
EC1A 4DD and will also be available during, and for at
least 15 minutes prior to, the Annual General Meeting.
Electronic Communications: Following various
amendments to company law as a result of the
Companies Act 1985 (Electronic Communications) Order
2000 (the “Electronic Communications Order”), certain
formal electronic communications with shareholders
have become legally possible. The Electronic
Communications Order provides that where there is
agreement between the Company and the shareholder(s)
concerned, the annual report and accounts and notices
of meetings may be sent to shareholders electronically,
or the Company may publish the relevant documents on
a website and send a notice by electronic means
informing shareholders that these documents are
available electronically. The Electronic Communications
Order also allows a shareholder to appoint a proxy by
electronic means. Provisions have been included in the
New Articles to give effect to the Electronic
Communications Order.
In accordance with the Electronic Communications
Order, the Company will only communicate
electronically in respect of matters covered by the
Electronic Communications Order with those
shareholders who specifically elect for electronic
communications.
Uncertificated Securities: The Uncertificated Securities
Regulations 2001 (the “Regulations”) made various
changes to the rules governing the CREST uncertificated
securities system. The most important change is that
CRESTCo Limited now keeps the definitive register so far
as uncertificated shares (shares held in paperless form)
in the Company are concerned (although, as required by
the Regulations, the Company is required to maintain a
record of uncertificated shares which will be available
for inspection by shareholders at the Company’s
registered office). Provisions have been included in the
New Articles to reflect the Regulations.
Timing and conduct of meetings: Provisions have
been included in the New Articles to assist the smooth
running of general meetings. These provisions will allow
the Board to change the date, time or place of meetings
where the Board considers it impractical or undesirable
to hold a meeting on the day, at the time or in the place
specified in the notice calling the meeting. They also
give the chairman of the meeting the conclusive
decision on points of order or procedure in meetings. 
New provisions have also been included to improve
security at general meetings. Where a member or proxy
gains entry to a meeting and refuses to comply with
such security arrangements or restrictions as the Board
directs or disrupts the proper and orderly conduct of the
meeting, the chairman of the meeting, without consent
of the meeting, may require that member or proxy to
leave or be removed from the meeting.
Unclaimed Dividends: Provisions have been included
in the New Articles to permit the Board to invest or
otherwise make use of dividends, interest or other sums
payable in respect of shares that remain unclaimed one
year after being declared. Any dividend or interest that
remains unclaimed after a period of 12 years from the
date when it was declared will be forfeited and will
revert to the Company. NO. RESOLUTIONS FOR AGAINST
1. To receive the Directors’ Report, the audited financial statements
and the auditors’ report for the year ended 30 September 2003.
2. To declare a final dividend.
3. To reappoint Mr D A Harding as a director.
4. To reappoint Mr M F Garner as a director.
5. To reappoint Mr W S Townsend as a director.
6. To reappoint Messrs Ernst & Young LLP as auditors and
to authorise the directors to fix the auditors’ remuneration.
7. To approve the directors’ remuneration report for the year
ended 30 September 2003.
8. To subdivide each of the issued and unissued ordinary
shares of 10 pence each into 2 ordinary shares of 5 pence each.
9. To authorise the directors to allot shares.
10. To approve the disapplication of statutory pre-emption rights.
11. To authorise the Company to purchase its own shares.
12. To adopt new articles of association of the Company.
Enterprise Inns plc
Form of Proxy
I/We.....................................................................................................................................................................................................................................
(Full name in block capitals)
of............................................................................................................................................................................................................................................
(Address in block capitals)
being (a) member(s) of Enterprise Inns plc (the “Company”) hereby appoint the Chairman of the meeting or ............................
of............................................................................................................................................................................................................................................
(See note 1 below)
as my/our own proxy to attend at the Annual General Meeting of the Company to be held at 11.00 a.m. on Thursday
22 January 2004 and at any adjournment thereof and, in the event of a poll, to vote in my/our name(s) as follows: 
(Please indicate with a cross (X) in the relevant box how you wish your vote to be cast on each resolution). 
Signature(s) ........................................................................................................ Dated....................................................................................
........................................................................................................
COMPLETING YOUR FORM OF PROXY
1. To appoint someone other than the Chairman of the meeting as your proxy, please delete the words “the Chairman of the meeting or”
and complete, in the space provided, the name and address of the other person so appointed. Any alteration to this form of proxy should
be initialled.
2. Please place a cross (X) in the relevant box to indicate how you wish to vote for each resolution. Unless so instructed, the proxy will
vote or abstain as he or she thinks fit.
3. If the shareholder is a corporation, this form of proxy should be executed either under its common seal or under the hand of its attorney
or an officer duly authorised for that purpose. In the case of joint shareholders, this form of proxy may be signed by any one of them, but
the names of all the joint holders must be stated. The vote of the senior who tenders a vote, whether in person or by proxy, will be
accepted to the exclusion of the votes of the other joint holders. For this purpose seniority will be determined by the order in which the
names stand on the register of members in respect of the joint holding.
4. Completion and return of this form of proxy will not prevent a shareholder from attending the meeting and voting in person.
5. To be valid this form of proxy must be signed and returned, together with the power of attorney or other authority (if any) under which it
is signed, or a notarially certified copy of such authority, to the Company’s registrars, Computershare Investor Services PLC, PO Box
1075, The Pavilions, Bridgwater Road, Bristol, BS99 3FA, so that it is received no later than 11.00 a.m. on 20 January 2004.
✄ For use in connection with the Annual General Meeting of Enterprise Inns plc convened to be held at
3 Monkspath Hall Road, Solihull, West Midlands B90 4SJ at 11.00 a.m. on Thursday 22 January 2004.
Before completing this form of proxy please read the notes included in the Notice of Annual General Meeting and the
notes set out below. 
Enterprise Inns Annual Report 2003 59 BUSINESS REPLY SERVICE
Licence No. SWB 1002
Computershare Services PLC
PO Box 1075
BRISTOL
BS99  3FA
Second fold
Third fold
and tuck in flap opposite
First fold
2 2 Financial Highlights 1
Directors and Advisers 2
Chairman’s Statement 3
Chief Executive’s Review 4
Finance Director’s Report 9
Directors’ Report 12
Corporate Governance 16
Report on Directors’ Remuneration 18
Group Profit and Loss Account 25
Group Statement of Total Recognised Gains And Losses 26
Note of Historical Cost Profits and Losses 26
Group Balance Sheet 27
Balance Sheet 28
Group Statement of Cash Flows 29
Notes to the Accounts 30
Report of the Auditors 50
Five Year Record 51
Analysis of Shareholders 52
Financial Calendar 52
Notice of Meeting 53
Explanatory Notes to the Notice of AGM 56
Form of Proxy 59
Contents
The quality and potential
of the company’s estate is
proving to be increasingly
attractive to multiple
operators and entrepreneurs.
The Enterprise Inns Team
Epic Bar & Brasserie, Bromsgrove
Originally a branded managed house, the renamed Epic Bar and
Brasserie was selected by Michelin starred chef and proprietor Pat
MacDonald to add to his highly successful Epicurean restaurant and
consulting business. A £200,000 joint investment programme in the
fabric and design of the premises followed and the Epic is now setting
new standards in food retailing.
Builders Arms, London
Award winning Geronimo Inns, established by Rupert and
Jo Cleveley in 1999, is one of London’s most successful
pub operators and now has fifteen outlets throughout
London and the south east. The Builders Arms, in the
heart of Chelsea, is renowned for the quality of its food
and drink, the highly professional staff and its smart and
comfortable surroundings.
Elgin Bar & Grill, London
In a project lasting just two weeks, and with an investment of almost £200,000, Triumph Pubs and Bars have
completely transformed this former managed house. Locals can now enjoy a high quality, yet down to earth, pub
experience in stunning surroundings. A second phase development for the first floor is planned in the near future.
The Stansfield Arms, Apperley Bridge
Multiple lessee Gardener Taverns operates three highly
successful food-led pubs with Enterprise. A recent
refurbishment at the Stansfield Arms has transformed the
outlet into the epitome of a traditional countryside
Yorkshire pub. At the heart of a popular tourist area, its
external appearance has been a key element in
attracting new business.
Epic Bar & Brasserie
Builders Arms The Stansfield Arms
Elgin Bar & Grill
The White Hart, Winchombe
A former 16th Century coaching inn run by the Burr family, the
White Hart has a unique Swedish character throughout, including
the specially imported furniture in the letting bedrooms. Situated
in a popular Cotswold village, The White Hart has recently received
many accolades including the Les Routiers Inn Of The Year 2003.
Left to right: Andrew Clifford, Strategic Planning and Investment Manager; 
David George, Finance Director; Ted Tuppen, Chief Executive; 
Simon Townsend, Customer Services Director; Gordon Harrison,
Operations Director.
The Fulham Mitre, London
The Fulham Mitre, in the heart of residential Fulham has
recently been refurbished with an investment of almost
£450,000 by lessees James Wheatcroft, Nigel Davies and
Louis and David Amato. This former managed house is now
being run by Louis and his family, and has quickly become a
favourite amongst local residents.
Double Barrel, Cheltenham
A £40,000 development programme has helped
the licensees of the Double Barrel re-establish
the pub at the heart of its local community. This
award winning pub has been recognised by the
Britain in Bloom campaign for its fundraising
achievements.
Double Barrel
The company and our licencees have continued to invest in a
wide range of development opportunities to realise the full
potential of our pubs.
The Fulham Mitre
The White Hart
before
after Enterprise Inns plc Annual Report and Accounts 2003
Enterprise Inns plc
3 Monkspath Hall Road, Solihull, West Midlands, B90 4SJ
Tel: +44 (0)121 733 7700
Fax: +44 (0)121 733 6447
www.enterpriseinns.com
Enterprise Inns plc
Annual Report and Accounts 2003