Job No.7971 06.12.04   Proof 1
Enterprise Inns plc Annual Report and Accounts 2004
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 2004 Financial Highlights 1
Directors and Advisers 2
Chairman’s Statement 4
Chief Executive’s Review 5
Finance Director’s Report 10
Directors’ Report 13
Corporate Governance 17
Report on Directors’ Remuneration 23
Group Profit and Loss Account 31
Group Statement of Total Recognised Gains And Losses 32
Note of Historical Cost Profits and Losses 32
Group Balance Sheet 33
Balance Sheet 34
Group Statement of Cash Flows 35
Notes to the Accounts 36
Report of the Auditors 66
Five Year Record 68
Analysis of Shareholders 69
Financial Calendar 69
Notice of Meeting 70
Explanatory Notes to the Notice of AGM 74
Contents
The Enterprise Inns Team
The Vine Bar & Kitchen, Cambridge
The Vine has been a well-known live music venue in Cambridge for many
years, but had progressively declined in popularity until it was no longer a
viable operation. New lessee Falcon Pubs Ltd elected to completely
transform the customer proposition of the Vine to take advantage of its
proximity to shops, leisure venues, offices and local residents. A substantial
joint investment with the Company has produced immediate results and
the pub is now taking in excess of £10,000 per week.
Spread Eagle, Tunbridge Wells.
Former Whitbread managers Keith and Lindsay Ackerman took on the lease
of The Spread Eagle when it was acquired by the Company. After steadily
repositioning the pub by growing its food offering, the size and layout of
the site restricted further growth. A joint investment has now added a
garden room / restaurant and a kitchen extension to further develop the
catering opportunity which has flourished since completion.
The Bell Inn, Tanworth in Arden
The closure of the local village Post Office provided the catalyst for
lessee Ashley Bent and the Company to install a Post Office counter
together with a high quality delicatessen in a little–used public bar area
of this pub. Following  the refurbishment of all trading areas, this stylish
and highly successful pub can now add "Shopping" to its theme of
"Eating, Drinking & Sleeping". This project was supported by the Pub is
the Hub campaign, of which the Prince of Wales is the patron.
Rising Sun, Clanfield
35 years ago, in this small Hampshire village of thatched cottages and brick and
flint houses, the Rising Sun was built in 1 day as a prefabricated structure
designed to last no more than a few years. In a project lasting almost a year, the
existing building was demolished and a brand new brick and flint building has
been created out of reclaimed materials. Lessees the Wheeler family have jointly
invested with the Company to create a vibrant village pub which is totally in
keeping with its local community and surroundings.    
Four Alls
Ship Inn
Spread Eagle
Rising Sun
The Red & Mellow Yellow
The Bell Inn 
The Thornberries, Alkrington.
The trade in this former managed house had
declined to such an extent that a total
repositioning was required to create a
sustainable business. Using another successful
project as a benchmark, licensees Norman
Lowry and Danny Hughes have transformed
the outlet to include a highly successful
coffee shop as well as the traditional pub
fayre. Plans are already underway to further
develop the site by adding a restaurant.
Four Alls, Welford on Avon.
An investment of over £300,000 has established the Four Alls
as a stylish, contemporary, food-led destination and enabled it
to exploit its riverside location to the full. Weekly takings have
more than tripled as a result.
Ship Inn, Hoylake.
The Bell, Frampton.
The Red & Mellow Yellow, Mansfield.
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.
Working in partnership with the Company, increasing numbers
of licensees are recognising the business opportunity which
can be developed by offering a wider range of services in pubs.
The Bell
The Thornberries
The Vine Financial Highlights
Enterprise Inns plc Annual Report 2004 01
 The acquisition of the balance of the equity in The Unique Pub Company Limited (‘Unique’) was
completed on 31 March 2004 at a cost of £608.9 million. The results include a full contribution from
the Unique estate in the second half of the year and a 16.8% share of Unique’s profit in the first half of
the year. 
 Average operating profit per pub in the core estate increased by 8% in the year.
 The quality of the pub estate has been improved through the acquisition of 22 individual pubs (in
addition to those acquired with Unique) and the disposal of 436 pubs. Furthermore, the Group invested
into the pub estate more than £50 million of capital expenditure during the year.
 At 30 September 2004 the estate comprised 8,727 leased and tenanted pubs, an increase of 3,640 in
the year. The value of the pub estate rose to £4.9 billion. 
 Cash generated after payments in respect of interest, tax, dividends and capital expenditure amounted
to £124.1 million.
2004 2003 Increase
Operating profit before exceptional items £402.7m £293.2m 37%
Profit before tax and exceptional items £231.2m £173.2m 33%
Adjusted earnings per share*† 47.5p 36.1p 32%
Dividends† 12.0p 8.55p 40%
* Excludes exceptional items, goodwill amortisation and a one-off tax credit in 2003. 
† For the comparative period adjusted earnings per share and dividends have been restated for the subdivision of shares, from 10 pence
per share to 5 pence per share, on 23 January 2004.  Directors and Advisers
02 Enterprise Inns plc Annual Report 2004
H V REID#
Chairman
Appointed to the Board 21/01/97
Hubert Reid, 64, is Chairman of the Royal London Mutual
Insurance Society Limited, Chairman of the Taverners Trust
PLC, Deputy Chairman of Majedie Investments PLC and a
non-executive director of 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 22/02/91
Ted Tuppen, 52, 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 British Beer and
Pubs Association. 
M F GARNER*# 
Non-Executive Director and 
Senior Independent Director
Appointed to the Board 29/09/95
Michael Garner, 67, is a non-executive director of 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 29/05/01
Jo Stewart, 55, 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 06/11/03
David Harding, 57, is Chairman of PD Ports plc and 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 member of the Institute of
Chartered Management Accountants.
S E MURRAY*# 
Non-Executive Director
Appointed to the Board 03/11/04
Susan Murray, 47, is a member of the Independent
Complaints Panel of the Portman Group and of the
Advertising Standards Authority. She has also recently
joined the Board of Imperial Tobacco plc. She was a
member of the Board of Littlewoods Ltd. from 1998 to
January 2004, initially as Sales and Marketing Director and
subsequently as Chief Executive of Littlewoods Stores
Limited. She has also been Director of International
Marketing for Diageo Plc and President and Chief Executive
Officer of The Pierre Smirnoff Company.  Enterprise Inns plc Annual Report 2004 3
Secretary
D C George
Auditors
Ernst & Young LLP, No. 1 Colmore Square, Birmingham,
B4 6HQ
Bankers
Bank of Scotland, 124 Colmore Row, Birmingham, B3 4AU
Financial Adviser
HSBC Investment Bank plc, Vintners Place, 
68 Upper Thames Street, London, EC4V 3BJ
Stockbrokers
HSBC Investment Bank plc, Vintners Place, 
68 Upper Thames Street, London, EC4V 3BJ
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
D C GEORGE 
Finance Director
Appointed to the Board 08/07/91
David George, 53, 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 23/10/94
Gordon Harrison, 47, joined the Company on its formation
and was appointed to the Board in October 1994. He has 25
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 01/10/00
Simon Townsend, 42, joined the Company in February 1999,
and was appointed to the Board in October 2000. He has
worked for 17 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
# Member of the Nominations Committee 4 Enterprise Inns plc Annual Report 2004
Chairman’s Statement
I am delighted to report on our results for the year to 30 September 2004 in which we continued the strong
growth in the Company’s financial performance and further expanded the scale of our business. Total operating
profit before exceptional items increased by 37% over prior year to £402.7 million and profit before tax and
exceptional items rose by 33% to £231.2 million. Adjusted earnings per share increased by 32% to 47.5 pence.
The results benefited from a full contribution in the second half of the year from The Unique Pub Company
Limited (Unique), its acquisition having been completed on 31 March 2004 and from the growth in profitability
in our core estate. 
The directors are recommending a final dividend of 8.4 pence per share, making a total for the year of 12.0
pence per share, an increase of 40% over the prior year. This will be payable on 24 January 2005. Dividend
cover, at nearly 4 times adjusted earnings per share, remains high and in this financial year we anticipate
continuing the policy of setting dividend levels broadly in line with earnings growth. The policy for future years
will be reviewed taking account of the needs of the business and having consulted with shareholders. We
expect to announce the outcome of this review with our preliminary results for the year ending 30 September
2005. 
At the start of the financial year the estate comprised 5,087 pubs. The acquisition of Unique added 4,054 pubs
to the estate. During the course of the year 22 pubs were acquired at a cost of £12.9 million and 197 individual
pubs were sold, realising proceeds of £49.5 million. In addition, on 14 April 2004, the sale of 239 pubs to
Admiral Taverns was completed realising proceeds of £61.0 million, net of disposal costs. This sale reduced the
number of pubs owned by the Group to no more than 25% of the total number of pubs in any Petty Sessional
Division (PSD). Subsequently, in line with its practice in similar transactions where the merged companies own
less than the 25% threshold of pubs in any PSD, the Office of Fair Trading decided not to refer the acquisition
of Unique to the Competition Commission. At the end of the financial year the estate comprised 8,727 pubs.
Earlier this month we announced the appointment of Susan Murray as an independent non-executive director of
the Company. Susan brings extensive experience of both the drinks and retail sectors which will be invaluable
to the Company as we move into the next phase of our growth. At the same time, we announced that Michael
Garner, Senior Independent Director, will be retiring from the Board at the conclusion of the Annual General
Meeting on 20 January 2005. Michael joined the Board in September 1995, immediately prior to the
Company’s flotation, and has made an outstanding contribution to the successful development of Enterprise
over the past nine years. We record our warmest thanks and appreciation of his wise counsel. Jo Stewart, who
has served on the Board since May 2001, will succeed Michael as Senior Independent Director.
The Group’s strategy remains focused on building shareholder value through investment in the development of
its licensed estate and the optimal use of the cash flows which are generated. Operationally, our priority during
the current year is to complete the integration of Unique successfully and to strive for continuous improvement
in all aspects of our business. The enlarged estate provides us with many opportunities for profitable growth
and strong cash generation and we look forward to another year of solid progress.
Hubert Reid
Chairman Enterprise Inns plc Annual Report 2004 5
Chief Executive’s Review
Results
2004 has been another year of strong progress for Enterprise Inns. Total operating profit before exceptional
items increased by 37% to £402.7 million, driven by like-for-like operating profit growth of 8% in the core
estate and the successful acquisition of Unique at the end of March 2004.
Adjusted earnings per share increased by 32% to  47.5 pence.
1999 2000 2001 2002 2003 2004
60
50
40
30
20  
10
0
450
400
350
300
250
200
150
100  
50
0
52.6
75.6
104.7
204.0
293.2
402.7
Adjusted EPS (pence)
Operating profit before exceptional items (£m)
9.5
15.8
19.8
29.5
36.1
47.5
Commitment to quality
As the pub market in the UK continues to mature and improve, it becomes ever clearer that the average pub-
goer is more discerning and that quality is what counts as the deciding factor in the success of a pub.
Our recognition of the importance of quality has driven our strategic direction over the past few years. We have
only made acquisitions, individual or corporate, that have improved the overall quality and potential of our
estate. We have constantly reviewed our estate to identify and dispose of those outlets which we do not
consider to have long-term potential and we have invested, alongside licensees, in unlocking additional profits
where appropriate. 53.5
49.7
6 Enterprise Inns plc Annual Report 2004
Excluding the acquisition of Unique, we have this year purchased 22 pubs for a total consideration of £12.9
million. We have of course looked at many more, including some corporate sales, but did not bid for these as
they did not meet our strategic criteria. In addition to the 239 pubs which we decided to sell to meet possible
competition concerns and for which we received proceeds in line with book value of £61 million, we sold a
further 197 pubs for a consideration of £49.5 million, giving an overall profit for the year of £1.3 million.
We continued to invest in our pubs alongside licensees, spending more than £50 million on the enlarged
estate. We estimate that our licensees spent a further £60 million on an annualised basis, indicating that
together we are investing more than 5% of estimated pub turnover in maintaining and improving the quality of
our pubs. Whilst an unbranded estate such as ours does not require the same levels of maintenance capital
expenditure as most branded outlets, we are confident that these levels of investment more than maintain our
competitive position in the marketplace.
Our commitment to quality and our joint expenditure with licensees is proving to be highly effective and has
helped to improve the quality, value and earnings potential of our pubs, with average operating profit per pub
up to £55,800 for the enlarged estate.
1999 2000 2001 2002* 2003* 2004 2004 2004
Enterprise Unique Combined
70
60
50
40
30
20  
10
0
Average operating profit per pub (£’000)
26.8
30.4
37.0
46.2
Chief Executive’s Review
58.6
55.8
* 2002 and 2003 restaed to exclude amortisation of goodwill
538
494
1999 2000 2001 2002 2003 2004 2004 2004
Enterprise Unique Combined
700
600
500
400
300
200  
100
0
Average value per pub (£’000)
231
277
377
424
591
563 Enterprise Inns plc Annual Report 2004 7
Chief Executive’s Review 
* average profit per pub within each band
£0–£15k £15–£20k £30–£45k £45–£60k £60–£75k >£75k
(£12k)* (£24k)* (£37k)* (£51k)* (£66k)* (£98k)*
50%
45%
40%
35%
30%
25%
20%
15%
10%  
5%
0%
Licensee profit (combined estate)
Licensee profit (Enterprise)
50%
45%
40%
35%
30%
25%
20%
15%
10%  
5%
0%
3
1
34
31
37
39
18
19
5
6
3
4
 2003   2004
Licensee performance
Developing a pub estate of high quality and long-term potential is a critical ingredient for a successful pub
company. The pubs are, however, no more than bricks and mortar unless we are able to attract and retain the
best quality licensees.
It is therefore vital that our pubs provide a worthwhile living for our hard-working licensees and in this respect
we are pleased that our estimated average licensee profit has increased by 8% during the year, driven equally
by organic growth and the improving quality of the estate. There are now just 152 pubs in the enlarged estate
where earnings potential is less than £15,000, whilst more than two-thirds have potential earnings of more
than £30,000, almost half of those more than £45,000.
2
28
37
21
7
5 8 Enterprise Inns plc Annual Report 2004
Once again, we take comfort from continuing improvements in certain key performance indicators. In the
enlarged estate of 8,727 pubs:
 More than 94% of pubs are let on substantive leases or tenancies.
 Bad debt costs for the year reduced to just 0.2% of sales turnover, down from 0.3% last year.
 Rent concessions at 30 September 2004 amounted to just 0.4% of the total rent-roll, down from 0.5%
last year.
 Over the past year, we have completed more than 1,200 rent reviews, with just 5 going through any
form of arbitration before being agreed. Of those which went to arbitration, all were found in our favour.
 Our database has more than 700 fully funded, screened, quality applicants for pubs, three times the
number available to let.
We remain convinced that the leased and tenanted format provides a low-cost opportunity for entrepreneurial
licensees to run their own businesses, offering to the consumer a wide range of non-formulaic retail styles and
huge choice of top quality products.
Unique Pub Company
At the end of March 2004, we completed the acquisition of Unique, which had for the past two years been
independently managed as an associate business. At the half year our 16.8% share of Unique’s operating profit
before exceptional items was £19.0 million, accounted for as an associate company, whereas in the second half
of the year the operating profit before exceptional costs of the Unique business was £123.0 million. 
The business is performing comfortably in line with our expectations, generating earnings before interest, tax,
depreciation and amortisation of £239 million in the twelve months to 30 September 2004.
As anticipated, we are dealing with the integration in two stages, firstly transferring all administrative functions
to our head office in Solihull. Thanks to the efforts of the Enterprise team and the cooperation of Unique staff,
this process has been highly successful and from 1 September 2004 all functions had been transferred and the
closure of the Unique offices put into effect. 
During this period we have also renegotiated substantially all of the supply arrangements common to each
company. We have always maintained close and cooperative relationships with our suppliers and I am pleased
that these renegotiations were very positive and resulted in buying synergies in line with our expectations.
Both closure and redundancy costs of £15 million and resulting cost savings of around £25 million per annum
have been in line with our expectations.
The two estates are now running in parallel, albeit with common telesales, distribution and administration. It
therefore remains for us to integrate the field-based operations of the estates, planned for April next year. This
will involve some disruption for the field team and for licensees alike but with careful planning and regular
communication, we do not expect major issues to arise.
Legislative background
We are pleased that the Licensing Act 2003 has reached the statute books and that it will become a reality
during 2005. If Local Authorities follow the spirit of the new legislation as set out in the Act, then we can look
forward to greater flexibility in licensing for the benefit of licensees and consumers alike and, potentially, the
development of a more civilised drinking culture across the UK. We will be working hard with our licensees to
ensure that they both understand the legislation and benefit from the opportunities it brings.
Chief Executive’s Review  Enterprise Inns plc Annual Report 2004 9
Chief Executive’s Review 
The legislation is, however, arriving at a time of increasing concern about binge drinking and, in particular, its
impact on antisocial behaviour. We are pleased that both the Prime Minister and the Home Office recognise
that the problems are associated with a small minority of the population and that the solution is to target
those outlets and individuals who encourage or engage in antisocial behaviour and to use existing police and
local authority powers to deal with them.
There is no place in our industry for irresponsible low pricing and promotions. A well-run pub is the home of
responsible drinking, a controlled environment able to promote sensible, social drinking, more often than not
accompanied by great food and entertainment.
High on the agenda are also the Government’s proposals for the banning of smoking in public places, as
outlined in the recent Public Health White Paper. Enterprise has been at the forefront of an industry initiative to
introduce a substantial reduction in smoking over the next four years, and we are pleased that the Government
appears to have taken account of these proposals. We share their view that a key element of any strategy
should be the protection of staff and we are therefore proposing a ban on smoking behind or near the bar or
serving areas within the next twelve months, in line with what is rapidly becoming common practice across the
whole pub sector and ahead of the deadlines suggested in the White Paper. 
The Government is also looking at a sensible period of consultation on the White Paper, with implementation not
scheduled until the end of 2008, by which time the industry initiative would in any event have increased the no
smoking areas in pubs to 80% of the floor area. Government proposals currently envisage the division of the industry
into non-smoking food pubs and wet led pubs and clubs where smoking is permitted. We hope that through the
consultation process the Government will permit segregated smoking and non-smoking areas within pubs, thus
protecting those excellent rural and community outlets which not only provide such an important service to their
communities, but also rely upon this broad range of trade to support a sustainable business. In the end, working with
Government, we are confident that the Government’s objectives for the reduction of smoking can be achieved
without putting many smaller pubs under pressure, with the resulting protection of jobs, tax revenues and amenity.
Conclusion
This has been a busy and successful year for Enterprise. Working alongside our licensees, we have seen mutual
growth in earnings in a market which remains highly competitive and regulated.
Without doubt, our commitment to quality drives our success. It may be a truism, but good pubs tend to do
well and to get even better, gaining customers and reputation as they go. There are so many quality reasons
why people go to a particular pub and poor pubs, often offering little other than cheap beer in dull
surroundings, are losing and will continue to lose market share.
The head office and field-based teams at Enterprise continue to perform ahead of expectations, tackling the
challenge of an almost doubling in our size over the past year, enthusiastically working towards achieving our
goal of providing the best service to our pub estate in the most efficient and cost-effective way possible.
Once again we have delivered substantial growth in earnings and dividends to our shareholders, through our
commitment to appropriate operating disciplines and steady growth in the core business, enhanced by the
effective use of our strong and predictable cash flows.
The new financial year has started well and the team look forward to another exciting and challenging year of
continued success and long-term growth in shareholder value.
Ted Tuppen
Chief Executive 10 Enterprise Inns plc Annual Report 2004
Finance Director’s Report
Acquisition of Unique
In March 2002 the Company invested £75 million to acquire a 16.8% share in The Unique Pub Company
Limited (“Unique”). At the same time, Enterprise was granted an option (the Call Option) to acquire the balance
of the equity between January and  November 2004.
On 31 March 2004, the Company exercised the Call Option for a cash consideration of £608.9 million. The
transaction was financed primarily from new borrowings, along with net proceeds of £51.2 million from a
placing of 8 million new Ordinary Shares, completed on 5 March 2004 at a price of £6.30 per share.
The Group’s share of Unique’s profit for 2003 and for the first half of 2004 has been separately identified in the
Group Profit and Loss Account. The results included a full contribution from Unique in the second half of the
financial year ended 30 September 2004 and this contribution is also separately identified in the Group Profit and
Loss Account.
Profit for the year
Total Group operating profit before exceptional items increased by 37% to £402.7 million and profit before tax and
exceptional items increased by 33% to £231.2 million. A summary of the Group Profit and Loss Account compared
with the prior year is as follows:
Year to 30 September
2004 2003 Increase
£m £m %
Turnover 712.7 480.6 48
Operating profit* 402.7 293.2 37
Interest* (171.5) (120.0)
Profit before tax* 231.2 173.2 33
Exceptional items (18.0) (0.1)
Profit after tax 147.5 124.5 18
Adjusted earnings per share (pence) 47.5 36.1 32
Dividend per share (pence) 12.0 8.55 40
* Stated before exceptional items.
An analysis of the Group operating profit before exceptional items of £402.7 million is as follows:
Year to 30 September
2004 2003
£m £m
Enterprise — full year* 263.2 256.7
Unique — half year* 123.9 —
Share of Unique
Half one 19.0 18.1
Half two — 20.9
Goodwill amortisation (3.4) (2.5)
Group operating profit 402.7 293.2
* Before goodwill amortisation. Enterprise Inns plc Annual Report 2004 11
Finance Director’s Report 
Cash inflow
Cash inflow from operating activities of £403.2 million represents an increase of 50% on prior year. Free cash
inflow increased from £119.0 million to £124.1 million: 
Year to 30 September
2004 2003 Increase
£m £m %
Operating cash inflow 403.2 269.0 50
Interest (158.3) (83.5)
Tax (36.3) (16.5)
208.6 169.0 23
Dividends (31.8) (25.5)
Capital expenditure on the pub estate (50.9) (22.0)
Other capital expenditure (1.8) (2.5)
Free cash inflow 124.1 119.0 4
In addition, net receipts from the purchase and sale of pubs amounted to £97.6 million:
Year to 30 September
2004 2003
£m £m
Disposal proceeds 110.5 40.8
Acquisitions costs (12.9) (16.2)
Pub churn 97.6 24.6
Debt facilities
Upon the acquisition of Unique, Group debt facilities increased significantly to £3,423 million, net of cash, as at
31 March 2004. 
In the second half of the financial year, the level of net debt had been reduced by £145 million to £3,278 million:
As at As at
30 September 2004 31 March 2004
£m £m
Corporate bonds (1,185) (1,185)
Syndicated debt (435) (538)
Securitised bonds (1,650) (1,712)
Bridge facility (155) (149)
(3,425) (3,584)
Cash
Securitised 108 118
Non-securitised 39 43
Net debt (3,278) (3,423)
The figures stated above are gross of issue costs, discounts and premiums and exclude swaps and fair value
adjustments.
Balance sheet
The net assets of the Group at year end were £1,353.6 million which compares with £1,081.4 million as at 
30 September 2003.
The book value of the pub estate at year end was £4.9 billion which included a revaluation surplus of £133.3
million, following completion of the annual valuation exercise. Pubs within the estate are valued on an existing
use basis. The Unique estate was valued by Christie & Co and the Enterprise estate was valued by Humberts
Leisure Limited. 12 Enterprise Inns plc Annual Report 2004
Interest
Net interest payable in the year was £171.5 million, which was covered 2.3 times. All of the debt within the
Group is at either fixed rates or is fixed through interest rate swaps.
Tax charge
The tax charge of £65.7 million represents an effective rate of 30.8% and is in line with the rate reported at the
half-year. The tax charge comprises corporation tax of £47.8 million and deferred tax of £17.9 million. The
current year corporation tax represents 22.4% of profit before tax.
The cash outflow in respect of tax during the year was £36.3 million and this represents 17.0% of profit before tax.
Dividend payment
The directors are recommending the payment of a final dividend of 8.4 pence per ordinary share, to be paid on
24 January 2005. This will result in a full year dividend of 12.0 pence per share, an increase on 40% on prior
year. The dividend cover, before exceptional items, is almost four times.
International Financial Reporting Standards
The Group will adopt International Financial Reporting Standards (IFRS) as the basis on which it will report its
financial statements for the year ending  30 September 2006. This adoption is in line with EU regulations
passed in 2002 which require all EU listed companies to use endorsed IFRS to report their consolidated results
for periods beginning on or after 1 January 2005. 
The Group is currently preparing for the adoption of IFRS and key finance staff have attended IFRS training
courses. In addition, we have carried out a high level review of the key differences that will arise although we
have yet to determine the full effects of adopting IFRS.
Our preliminary view is that the major differences between current accounting practice and IFRS will be in respect
of fixed assets, hedge accounting and deferred tax. In addition, the presentation of the financial statements will be
noticeably different. We note the likely impacts in these three areas as follows:
 Fixed assets
The Group currently revalues its pub estate annually and adjusts the book value of assets accordingly.
The difference between the historic cost of these assets and their revalued amount is held in a
revaluation reserve. The estate is currently valued in line with UK accounting standards on an ‘existing
use basis’. IFRS require fixed assets to be valued at ‘fair value’ and we will work with valuers to
ascertain the effect that this may have on the value of the estate. In addition, in the event that an
individual pub falls below its historic cost, any loss must be recognised immediately in the Profit and
Loss Account under IFRS. Finally, a proportion of the value of each pub may need to be depreciated
under IFRS rules. No depreciation is currently charged to the Profit and Loss Account in relation to the
pub estate. 
 Hedge accounting
The Group hedges its interest rate risk using interest rate swaps. The application of UK accounting
standards currently results in gains and losses on the swaps being recognised at the same time as the
gain or loss on the items being hedged (i.e. floating rate debt). IFRS set out strict criteria that must be
met before such hedge accounting can be adopted. Failure to achieve hedge accounting for a
significant proportion of the Group’s interest rate swaps may result in increased volatility of both
earnings and net assets.
 Deferred tax
UK standards currently require a deferred tax liability to be recognised where a tax charge in relation to
transactions reflected in the financial statements is expected to arise in the future. IFRS require the
recognition of deferred tax liabilities on a different basis and liabilities must be recognised even where
they may not crystallise. The principal difference that will arise in relation to the Group is that a
deferred tax liability will have to be recognised following the revaluation of fixed assets. This liability
will represent the tax charge that would arise should the assets be sold at their revalued amount. It
should be noted that this charge will not be one that the Group expects to pay. 
D C George
Finance Director
Finance Director’s Report  Enterprise Inns plc Annual Report 2004 13
Directors’ Report
The directors present their report and accounts for the year ended 30 September 2004.
Accounts and dividends
The Group profit for the year, after taxation, amounted to £147.5m (2003 — £124.5m) and is dealt with as
shown in the Group Profit and Loss Account.
The directors recommend the payment of a final dividend of 8.4 pence (2003 — 5.7 pence after restating for
the sub-division of shares on 23 January 2004) per ordinary share to be paid on 24 January 2005 to members
on the register on 31 December 2004. When added to the interim dividend of 3.6 pence (2003 — 2.85 pence
after restating for the sub-division of shares on 23 January 2004), this produces a total dividend for the year of
12.0 pence (2003 — 8.55 pence after restating for sub-division of shares) 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 4 to 12. Taken together, these are intended to constitute an Operating and Financial
Review.
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, 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. In addition, an annual conference is held to which all employees
are invited and provides an opportunity for employees to be made aware of key objectives and strategy. 
Employees are encouraged to invest in the Group through participation in savings-related share options
schemes. Employees enter into a savings contract for either five or seven years at the end of which they are
entitled to purchase shares at a discount of 20% to the market price of the shares at the time of the issue of
the options. 
Directors and their interests
The directors at the date of this report are listed on pages 2 to 3. All directors served throughout the year other
than Mr D A Harding who was appointed on 6 November 2003 and Mrs S E Murray who was appointed on
3 November 2004.
In accordance with the Articles of Association of the Company, Mr G E Tuppen, Mr D C George and Mr A J
Stewart retire from the Board at the Annual General Meeting by rotation and offer themselves for
reappointment. Having been appointed since the last Annual General Meeting, the reappointment of Mrs S E
Murray is also being proposed. 14 Enterprise Inns plc Annual Report 2004
Directors’ Report
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:
Ordinary Shares of 30 September 30 September
5 pence each 2004 2003 
H V Reid Beneficial 122,500 122,500
G E Tuppen Beneficial 886,744 920,000
as Trustee 197,300 176,800
D C George Beneficial 911,182 852,000
as Trustee 114,000 114,000
G W Harrison Beneficial 452,000 538,804
W S Townsend Beneficial 82,684 38,056
M F Garner Beneficial 32,746 32,746
A J Stewart Beneficial 14,000 14,000
D A Harding Beneficial — —
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 Directors’ Remuneration Report. 
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 30 November 2004 the Company had been notified of the following material holdings of 3% or more of
the Company’s issued share capital:
Number of Percentage of
Ordinary Shares Issued Share Capital
FMR Corp/Fidelity International Limited 28,215,565 8.1
Deutsche Bank AG 17,949,203 5.1
Prudential plc 14,463,405 4.1
Legal and General Group plc 13,968,759 4.0
Scottish Widows Investment Partnership Limited 13,884,276 4.0
Landsdowne Partnership Limited Partnership 11,756,654 3.4
Purchase of own shares
During the year, the Group purchased 4,405,000 of its own shares to satisfy awards under the Enterprise Inns
Incentive Plans and other share option schemes. These shares were purchased for a consideration of £24.1
million (net of expenses) and had a nominal value of £0.2 million. The total number of shares held by the Group
at 30 September 2004 was 6,332,846, representing 1.8% of the total called up share capital at that date. The
maximum number of shares held during the year ended 30 September 2004 was 6,522,484 on 9 September
2004 for a period of seven days, representing 1.9% of total called up share capital at that time. 
During the year, 601,190 shares with a nominal value of £30,060 were disposed of by the Group by way of the
exercise of share options under the share schemes. A total of 523,162 shares were disposed of through the
short-term and long-term incentive schemes for consideration of £7. A total of 78,028 shares were disposed of
through the Quest Trust for consideration of £77,508. 
Authority for the Group to purchase its own shares was still in force at 30 September 2004. Enterprise Inns plc Annual Report 2004 15
Directors’ Report 
Creditors payment policy and practice
The Group 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 Group had an average of 31 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. The Company
also promotes a glass recycling service to licensees.
Prior to the recent publication of the Government’s White Paper on Health, the Company has played a leading
role in the development and publication of industry proposals to reduce the incidence of smoking in pubs,
which included:
 By the end of 2005, no smoking at the bar or back-of-house areas and a minimum of 50% of
restaurant/dining area floor space to be non-smoking.
 Reducing trading floor space area for customers who smoke from a maximum of 65% by December
2005 to a maximum of 20% by December 2009.
The Company is committed to continue to promote and implement these proposals with licensees and, through
its membership of the British Beer and Pubs Association, the Company will continue to play an active part
during the forthcoming period of consultation with the Department of Health. 
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.
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 has prepared for the implementation of the Licensing Act 2003 and is working intensively with
licensees throughout 2005 to ensure that appropriate opportunities for licensees and consumers are realised.
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 actively promotes the Portman Group’s Proof of Age Card scheme to all
licensees and provides materials to all new licensees to enable them to operate the scheme in their premises. 16 Enterprise Inns plc Annual Report 2004
Directors’ Report
Through its membership of the British Beer and Pubs Association, the Company has actively participated in
discussions with Government in the preparation of its National Alcohol Harm Reduction Strategy.
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 Company has widely communicated the Disability Discrimination Act 2004 to all licensees and seeks to
ensure that appropriate and reasonable actions have been implemented, where relevant, in the Company’s
licensed premises.
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;
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Company will continue in business.
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
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 20 January 2005,
amongst other matters, for:
 The approval and adoption of the Enterprise Inns 2004 Annual Bonus Plan and Long Term Incentive
Plan.
 The approval and adoption of the Enterprise Inns new employee share schemes.
Further details can be found in the Notice of Meeting and Explanatory notes on pages 70 to 75 and the letter
from the Chairman of the Remuneration Committee to shareholders dated 30 November 2004. 
In addition and in accordance with best practice and investor guidelines, the Company is offering all
shareholders an electronic proxy appointment facility. Details of this can be found on the form of proxy
enclosed with this document.
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
30 November 2004 Enterprise Inns plc Annual Report 2004 17
Corporate Governance
Introduction
Best practice in corporate governance will protect and promote the interests of stakeholders in the Company.
For the year under review the appropriate governance provisions are as set out in the Combined Code published
by the UK Listing Authority in 1998 (the “Combined Code“). During 2003, reports by Sir Derek Higgs and Sir
Robert Smith resulted in the publication of a new Combined Code (the "New Combined Code") taking effect for
accounting periods beginning on or after 1 November 2003. Although this does not apply to the Company until
the financial year 2004/05, we have during the period under review put in place governance structures to
comply with the New Combined Code that are appropriate to the Company and the business it operates.
The Company is committed to the high standards of corporate governance set out in the New Combined Code
provisions as adopted by the UK Listing Authority, the Turnbull Report on Internal Control and appropriate best
practice guidance issued by investor bodies. This report sets out the steps the Company has taken to bring it
into compliance with the New Combined Code.
Statement by the directors on compliance with the Combined Code and the New Combined Code
The Company has been in full compliance throughout the year with the provisions set out in Section 1 of the
Combined Code.  
Additionally, the Board took steps to ensure compliance with the New Combined Code such that by the end of
the period under review the Company is in full compliance with the New Combined Code with the exception of
provision A.3.2 which provides that at least half the Board, excluding the Chairman, should comprise non-
executive directors determined by the Board to be independent. The Board therefore reviewed its composition
having regard to the Company’s individual circumstances, its size and complexity and the risks and challenges
it faces.  
The Board recognised that Enterprise owns a substantial freehold estate of licensed property, its principal
income being the rent payable by licensees and the wholesale profit on the beer and cider supplied to them.
Its business model is a simple one and the commercial arrangements with its licensee partners have been
upheld in both UK and European Courts and by the UK Competition Authorities. The Group’s Profit & Loss
Account, Balance Sheet and Cash Flow Statement are transparent and substantially all of the Company’s
licensed estate is independently valued each year. Debt facilities are in place with a weighted average life to
maturity of almost 14 years at a weighted average interest cost of 6.95%. Cash flows are strong and stable.
The Company's strategy for building shareholder value, which is referred to in the Chairman's Statement, is
well understood by investors and the management team are wholly commited to its delivery. The Board
concluded that a strong executive presence, currently numbering four directors, was important to its
effectiveness and that three independent non-executive directors, in addition to the Chairman, would complete
its composition, fully match the requirements of the business and ensure proper governance of the Group.
The Workings of the Board and its Committees
The Board
Composition
The Chairman, Mr H V Reid, has primary responsibility for running the Board and devotes such time to his role
as is necessary to properly discharge his duties. The Chief Executive, Mr G E Tuppen, has executive
responsibilities for achieving operational and financial goals, results and for executing the Company’s strategy.
Clear divisions of accountability and responsibility between the Chairman and Chief Executive have been
agreed by the Board and are set out in writing. The written responsibilities of the Chairman and Chief Executive
are available on the Company’s website.
The Board requires that all non-executive directors are free from any relationship with the executive
management that could result in any conflict or affect their independent judgement. As stated above, the
Board currently considers that all of its non-executive directors meet this requirement. The Board will continue
to monitor the independence of the non-executive directors.  18 Enterprise Inns plc Annual Report 2004
Corporate Governance
Biographical details of the Board members are set out on pages 2 and 3. 
Operation of the Board
The Company has an effective Board which leads and controls the Company and is responsible to shareholders
for its proper management. It reviews trading performance, sets and monitors strategy and examines major
capital expenditure and acquisition opportunities. The Board also delegates to management the detailed
planning and implementation of policy in accordance with appropriate risk parameters. The Board has
established guidelines requiring that specific matters are reserved for a decision by the full Board. This ensures
that the Board maintains control over strategic, major financial and key operational issues. Such matters
include, for example, the approval of financial statements, material acquisitions and disposals of assets, risk
management and governance policies. The schedule of matters reserved for the Board is set out and agreed in
writing and is reviewed annually. 
Meetings and attendance
The Board meets at least six times per annum and convenes additional meetings to consider matters that are
time critical. In addition there is a separate meeting held annually to discuss and review strategy and future
opportunities. All directors attended all Board Meetings and the Strategic Review during the year with the
exception of Mrs S E Murray who was appointed on 3 November 2004. 
Non-executive directors and the Senior Independent Director
The non-executive directors complement the skills and experience of the executive directors and bring an
independent judgement to the decision-making process at Board and Committee level. Their role requires a
time commitment in the order of 15 days per annum plus additional time as necessary to properly discharge
their duties.
The Company has appointed a Senior Independent Director whose role and responsibilities are clearly defined,
set out in writing and agreed by the Board. The written responsibilities of the Senior Independent Director are
available on the Company’s website.
During the year the Senior Independent Director met with the other non-executives to discuss matters in a
forum that did not include executive directors or the Chairman. In addition, and in compliance with the New
Combined Code, all of the non-executives and the Chairman met without the executive directors being present
to discuss amongst other matters the performance of the Chief Executive.
Information and training
The Board and its Committees are supplied with full and timely information which enables the proper discharge
of their responsibilities. 
All directors have access to the services of the Company Secretary and may take independent professional
advice at the Company’s expense. There is a formal written procedure concerning independent professional
advice setting out clear guidelines which have been agreed by the Board. The Company Secretary acts as
secretary to the Board and its Committees and is responsible for advising the Chairman on matters of corporate
governance.
Following the appointment of new directors an appropriately tailored induction programme is arranged and the
training needs of each director are regularly reviewed.
Retirement of Directors
The Company’s Articles of Association provide for one-third of the directors to be subject to reappointment
every year. The Board has determined that all directors are subject to reappointment at least every three years.
In addition, all directors are subject to reappointment by shareholders after their initial appointment.
Reappointment of non-executive directors is not automatic and is subject to formal review. Corporate Governance
Enterprise Inns plc Annual Report 2004 19
Board Committees
The following Committees dealt with specific aspects of the Company’s affairs:
The Audit Committee
During the year the Audit Committee was chaired by Mr D A Harding and comprised, in addition, two other
non-executive directors, Mr M F Garner and Mr A J Stewart. In accordance with the New Combined Code, the
Chairman resigned from the Committee during the year. All members are independent. The Committee met
three times during the year. All Committee members attended each meeting. The external auditors, Chairman,
Chief Executive and Finance Director were in attendance at part of each meeting by invitation.
The Committee has terms of reference which are set out in writing and agreed by the Board and are in
accordance with the recommendations set out in the New Combined Code. These are available on the
Company’s website. 
The 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 shareholders. The Committee advises the Board on the
appointment of external auditors and on their remuneration and discusses the nature and scope of their work.
The Committee has also been concerned to ensure that the appropriate standards of governance, reporting and
compliance are being met. 
During the year and in accordance with the New Combined Code, the internal audit function met with the
Committee to review internal audit procedures. In addition, the Committee and Board approved a whistle
blowing policy and procedure under which employees may, in confidence, raise concerns about possible
improprieties in matters of financial reporting and in other matters.
The Nominations Committee
During the year the Nominations Committee was chaired by Mr H V Reid and comprised, in addition, the Chief
Executive and the three other non-executive directors, Mr M F Garner, Mr A J Stewart and Mr D A Harding. 
It is responsible for proposing, for approval by the Board, candidates for appointment to the Board, having
regard to its balance and structure. The Committee met twice during the year during which all members were
in attendance. The Committee seeks the advice of external recruitment consultants as necessary and follows a
formal and transparent procedure to ensure that new appointments, including that of Mrs S E Murray, comply
with the principles set out in the New Combined Code.
The Committee has terms of reference which are set out in writing and agreed by the Board and are in
accordance with the recommendations set out in the New Combined Code. These are available on the
Company’s website. 
The Remuneration Committee
During the year the Remuneration Committee was chaired by Mr A J Stewart and comprised, in addition, two
other non- executive directors, Mr M F Garner and Mr D A Harding. In accordance with the New Combined
Code, the Chairman resigned from the Committee during the year. The Committee is responsible for
determining the contract terms, remuneration and other benefits of the executive directors and senior
management, including performance related bonus schemes and the Chairman’s fee. The remuneration of the
non-executive directors is set by the Board.
The Committee appoints external remuneration consultants and advisers as necessary to provide remuneration
services and advice to the Remuneration Committee and the Company. The Committee met six times during
the year during which all members were in attendance.  Corporate Governance
20 Enterprise Inns plc Annual Report 2004
The Remuneration Committee has terms of reference which are set out in writing and agreed by the Board and
are in accordance with the recommendations set out in the New Combined Code. These are available on the
Company’s website. 
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 23 to 30.
Performance evaluation
Principle A.6 of the New Combined Code provides that the Board should undertake a formal and rigorous
annual evaluation of its own performance and that of its Committees and individual Directors. The New
Combined Code provides guidance on the process in the supporting principle to A.6: for example, individual
evaluation should aim to show whether each director continues to contribute effectively and to demonstrate
commitment to the role and that the Chairman should act on the results of the performance evaluation by
recognising the strengths and addressing the weaknesses, if any, of the Board.
During the year the Company has internally undertaken a full performance evaluation programme in
accordance with this principle and has effectively evaluated the Board, its Committees and its individual
directors, including the Chairman. This has been achieved by the following processes:
Board performance evaluation 
The process was led by the Chairman and each director completed a questionnaire in which they were asked to
score a number of performance criteria. The results of the questionnaires were compiled into a report by the
Company Secretary and the Chairman presented the findings to the Board at a Board meeting when all of the
directors were present.
In summary, it was found that the Board works effectively and efficiently, is well informed and consists of a
balanced group of widely experienced individuals who bring a variety of skills and knowledge to enable the
performance and development of the Company to be effectively debated, reviewed and challenged. In addition,
it was felt that Board strategy effectively develops the business in an appropriate manner. This enables the
Board to fulfil its responsibilities to its stakeholders. 
Board Committee performance evaluation
For the Board Committee evaluation process each Committee Chairman and member completed a
questionnaire in which they were asked to score a number of performance criteria. The results of the
questionnaires were compiled into a report by the Company Secretary and the Chairman presented the findings
to the Board.
In summary, it was found that the Committee Chairman and members are satisfied with the current committee
structure, the frequency of meetings, that matters discussed and information provided work well and that the
structure was not so formal that members felt restricted in procedural matters. In addition, it was felt that the
balance of members of each committee was right given the size and structure of the Company and working
relationships between Board members
Non-executive director performance evaluation
This process was led by the Chairman and each non-executive director completed a self-appraisal questionnaire
in which they were asked to score a number of performance criteria. Each non-executive director then met on a
confidential basis with the Chairman to review the questionnaire and to discuss matters in detail. In addition,
the Senior Independent Director met with the other non-executives without the Chairman being present to
review the Chairman’s performance. Corporate Governance
Enterprise Inns plc Annual Report 2004 21
Executive director performance evaluation
This process was lead by the Chief Executive and each executive director completed a self-appraisal
questionnaire and was asked to score a number of performance criteria. Each executive director then met on a
confidential basis with the Chief Executive to review the questionnaire and to discuss matters in detail. In
addition, the Chairman met with the non-executives without the executive directors present to discuss,
amongst other matters, the performance of the Chief Executive.
Shareholder relations
The Company has a continuing dialogue with institutional investors including direct face to face contact,
presentations after the preliminary announcement for the year and the results for the half year and specific
analyst presentations with feedback from the Company’s brokers as necessary. The Company uses the Annual
General Meeting to encourage participation by private investors. The Annual General Meeting, held in January
each year, provides the opportunity for a dialogue with private investors and procedures at such meetings are in
accordance with the New Combined Code. 
The Chairman ensures that the Chairmen of the Audit, Nominations and Remuneration Committees are
available at the Annual General Meeting to answer questions. Details of the resolutions to be proposed at the
Annual General Meeting on 20 January 2005 can be found in the Notice of the meeting on pages 70 to 73. The
Notice is sent to shareholders at least 20 working days before the Annual General Meeting and details of proxy
votes for and against are made available after the result of hand votes. In accordance with the New Combined
Code, the Company has proposed in the Notice separate resolutions on each substantial matter.
The Chairman is responsible for ensuring, via the Company Secretary, that views of major shareholders are fed
back to the non-executive directors on a regular basis. 
Information about the Company, including reports, announcements and presentations, is made available on our
website. 
The Company has offered all its shareholders the opportunity to register and receive shareholder
communications, such as the report and accounts, the interim report and notices of meetings, electronically via
the Internet rather than in paper form through the post in accordance with good investor practice. This year the
Company is, in accordance with the Myners Report, offering shareholders a facility for electronic proxy voting. 
Finally, the Company’s registrars, Computershare Investor Services PLC, deal with a wide range of investor
queries on behalf of shareholders.
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.
Internal control procedures have not altered significantly following the acquisition of Unique. However, the
internal audit function will be specifically examining any changes and considering the integration processes as
part of their ongoing work.  Corporate Governance
22 Enterprise Inns plc Annual Report 2004
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.
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 plc Annual Report 2004 23
Directors’ Remuneration Report
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 M F Garner, Mr D A Harding and Mrs S E Murray. 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 Schedule 7A to the Companies Act 1985, which incorporates
the Directors’ 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. The Committee and
the Company have also received specific advice on the Enterprise Inns Incentive Plans from CMS Cameron
McKenna, the Company’s solicitors. In addition, the Remuneration Committee has appointed New Bridge Street
Consultants LLP (who provide no other services to the Company save in respect of advice in connection with
the operation of the Company’s incentive schemes) who have undertaken a comprehensive review of and
advised on the remuneration packages of the executive team. 
Remuneration policy — executive directors 
The Remuneration Committee’s policy is to ensure that remuneration arrangements at Enterprise allow the
Company to attract and retain the exceptional individuals required to continue to enhance shareholder value.
Base salaries will be set accordingly, with a significant proportion of executives’ remuneration performance
related so that appropriate levels of reward are available for outstanding performance. The Committee will, at
all times, be mindful of remuneration practices in other relevant companies.
To achieve this, the remuneration package consists of basic salary and benefits, pensions, performance related cash
bonuses and long-term and short-term incentive arrangements under which incentives earned are satisfied by the
award of shares. Consequently, a significant proportion of the executive directors’ remuneration is linked to
performance. 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.
Current 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 1997 Plan”), which provides for participants to earn non-pensionable cash
bonuses and short-term and long-term incentives. The 1997 Plan rules recite the Company’s intention to satisfy
all share incentives awarded under the 1997 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 1997 Plan and no
further awards are to be made under the 1997 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 1 October 2003 the trust,
which has been funded by a combination of loans and gifts from the Company, held an unutilised balance of
1,944,006 shares (restated to take account of the sub-division of shares from 10 pence to 5 pence per share on
23 January 2004). The trust has purchased ordinary shares during the year as follows:
on 5 July 2004 — 1,000,000 ordinary shares;
on 16 July 2004 — 1,000,000 ordinary shares; 
on 9 August 2004 — 1,000,000 ordinary shares; 
on 10 August 2004 — 500,000 ordinary shares; 
on 2 September 2004 — 320,000 ordinary shares; and on 9 September 2004 — 585,000 ordinary shares. The
total cost of these purchases was £24,139,100 (net of expenses) and was funded by a loan from the Company.
Options over 333,524 shares were exercised on 25 November 2003 and further options over 189,638 shares 24 Enterprise Inns plc Annual Report 2004
were exercised on 16 September 2004. It is intended that the remaining 5,825,844 shares held by the Trust
will be used to satisfy other awards made under the Enterprise Inns Incentive Plans and other share option
schemes.
Under the terms of the current Enterprise Inns Incentive Plans, executive directors can participate in long-term
and short-term incentives dependent upon achievement of compound growth in adjusted Earnings Per Share
(EPS). The Committee believes that these arrangements provide rewards which reflect an appropriate balance
between individual and Group 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.
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 growth. 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 growth between the minimum and
maximum targets. The cash bonus awards for the year are shown in the remuneration table on page 27.
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 growth exceeds RPI by at least 2.5% over the performance period. To achieve the
maximum award of 20% of salary, adjusted EPS growth 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 1997 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
growth 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 growth 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
growth 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 growth 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 growth 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. 
Proposed new incentive arrangements
As set out in the Chairman of the Remuneration Committee’s letter, following a comprehensive review of the
remuneration packages of the executive team, the Committee proposes that the 2002 Plan be replaced by a
new annual bonus plan (the “Bonus Plan”) and a new long-term incentive plan (the “LTIP”), shareholder
approval for the establishment of which is being sought at the forthcoming AGM.
Summaries of the principal terms of the Bonus Plan and LTIP are set out in the appendix to the Chairman of the
Remuneration Committee’s letter (with the relevant sections deemed incorporated into this report). These new
incentive arrangements share many of the features of the existing 2002 Plan. For example, the Bonus Plan
contains a requirement to defer an element of any bonus earned into shares (as is the case with the short-term
element of the 2002 Plan), with the basic structure of the LTIP broadly similar to the long-term incentive
element of the 2002 Plan (in that awards over shares may be made that are subject to a sliding scale of targets
and which do not vest in full until five years after grant). 
Directors’ Remuneration Report Enterprise Inns plc Annual Report 2004 25
Directors’ Remuneration Report
More particularly, the maximum award level under the Bonus Plan for the Chief Executive will be 100% of
salary. For the other executive directors the maximum will be 75% of salary. The Committee considers this
increased annual bonus opportunity appropriate as it ensures that the executive team are fully incentivised to
continue to enhance shareholder value. In addition, it should be noted that awards under the Bonus Plan will
be subject to even more demanding targets than those applied to awards under the short-term element of the
2002 Plan (taking account of the circumstances prevailing at the relevant time). No less than 75% of an
executive’s bonus will be subject to a sliding scale of challenging annual adjusted EPS growth targets, with no
more than 25% subject to challenging personal targets. Sixty per cent of any bonus earned will be paid in cash,
with the remaining 40% deferred into shares for three years. 
The LTIP will have two elements, an award of “Performance Shares” (worth up to 150% of salary each year) and
an award of “Matching Shares” linked to the investment of up to 25% of salary worth of Company shares,
which are then matched on a 2:1 basis. Awards vest subject to the satisfaction of a sliding scale of average
compound annual adjusted EPS growth targets and the Company’s Total Shareholder Return (“TSR”)
performance against the FTSE 100. More specifically, awards only vest in full if the Company’s average
compound annual adjusted EPS growth over a three-year performance period following grant is at least 15%
and the Company’s TSR ranking against the FTSE 100 is in the upper quintile. Awards vest in three equal
tranches on the third, fourth and fifth anniversaries of grant.
The Committee believes that it is appropriate for a mixture of adjusted EPS growth and TSR targets to apply to
awards made under the LTIP for the following reasons:
 The adjusted EPS growth targets will encourage the executive team to deliver substantial annual
adjusted EPS growth over the three-year performance period.
 The TSR targets will require the Company to deliver returns to shareholders in excess of its FTSE 100
peers.
The Committee will seek independent advice to determine the extent to which the adjusted EPS growth and
TSR targets are met.
Shareholder approval is also being sought at the forthcoming AGM for the establishment of the Enterprise Inns
2005 Employee Share Option Scheme (the “ESOS”), the Enterprise Inns 2005 Savings Related Share Option
Scheme (the “SAYE” scheme) and the Enterprise Inns Share Incentive Plan (the “SIP”). All employees of the
Company (including executive directors) will be eligible to participate in the SAYE scheme and the SIP.
However, it is not the Committee’s intention to grant options under the ESOS to executives who participate in
the LTIP.
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 of no fixed term 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.
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 26 Enterprise Inns plc Annual Report 2004
The terms of appointment for Mr H V Reid, Mr M F Garner, Mr A J Stewart, Mr D A Harding and Mrs S E Murray
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
S E Murray 3 November 2004 Terminable on 6 months’ notice
Biographical details of all directors can be found on pages 2 and 3.
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 TSR (with dividends reinvested) for each of the last five financial years in a holding
of the Company’s shares against the corresponding TSR in a hypothetical holding of shares in the FTSE 100
index. 
Directors’ Remuneration report
Enterprise Inns plc TSR Chart
30 Sept 99
350
30 Sept 00 30 Sept 01 30 Sept 02 30 Sept 03 30 Sept 04
300
250
200
150
100
50
Enterprise Inns plc
FTSE 100
Value (£)
124
81
72
339
272
159
104
62
68
76
400
The graph above shows the TSR, in terms of the change in value (with dividends reinvested) of an initial
investment of £100 on 30 September 1999 in a holding of the Company’s shares against the corresponding
TSR in a hypothetical holding of shares in the companies represented in the FTSE 100 index.
The FTSE 100 index was selected as it represents a broad equity market index in which the Company is a
constituent member. Enterprise Inns plc Annual Report 2004 27
Directors’ Remuneration Report
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 2004 2003
H V Reid 149 ————— 149 135
M F Garner 37 ————— 37 33
A J Stewart 37 ————— 37 33
D A Harding 34 ————— 34 —
Executive directors
G E Tuppen — 446 21 134 89 112 802 720
D C George — 267 18 80 53 67 485 428
G W Harrison — 239 17 72 48 60 436 393
W S Townsend — 220 15 66 44 55 400 343
257 1,172 71 352 234 294 2,380 2,085
(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 2004.
(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 2004.
Awards of long-term share incentives made during the year under the 2002 Plan are disclosed on pages
29 and 30.
The above pension contributions are amounts paid to the directors’ individual defined contribution schemes.
Interests in options
The executive directors and other executives are able to acquire shares in the Company by participating in the
Enterprise Inns Savings Related Share Option Scheme and options granted under this scheme are set out in the
table below.
The interests of the directors were as follows:
At 1 October 2003
Exercise and
price 30 September 2004
£* Number* Exercise period
G E Tuppen 1.245 13,484 1 February 2006–1 August 2006
D C George 1.245 13,484 1 February 2006–1 August 2006
G W Harrison 1.245 10,788 1 February 2006–1 August 2006
2.320 1,414 1 February 2008–1 August 2008
12,202
W S Townsend 1.245 5,392 1 February 2006–1 August 2006
2.095 4,732 1 February 2007–1 August 2007
10,124
* The exercise price and number of shares have been adjusted to take into account the sub-division of ordinary
shares on 23 January 2004. 
There are no performance criteria restricting the exercise of options held under the SAYE scheme. 28 Enterprise Inns plc Annual Report 2004
Directors’ Remuneration Report
Gains made on share options
The directors did not exercise any share options under the Executive Share Option Scheme during the year.
Gains made on the exercise of share options, other than exercises of short-term and long-term incentives, in
the previous year were G W Harrison — £885,000 and W S Townsend — £186,000.
The market price of the Company’s shares on 30 September 2004 was 570.0 pence per share and the high and
low share prices during the year were 655.0 pence and 420.75 pence respectively.
Short-term incentive
During the year short-term awards granted under the 1997 Plan on 18 December 1999 and 18 December 2000
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 25/11/03 465.13 28,122 131
16/09/04 583.75 18,910 110
D C George 25/11/03 465.13 19,374 90
16/09/04 583.75 12,480 73
G W Harrison 25/11/03 465.13 16,876 78
W S Townsend 25/11/03 465.13 10,626 49
16/09/04 583.75 7,942 46
577
* The market price at date of exercise and number of shares exercised on 25 November 2003 have been
adjusted to take account of the sub-division of ordinary shares from 10 pence to 5 pence per share on 23
January 2004.
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 22/12/03 89 1/10/2007–20/12/2013
D C George 22/12/03 53 1/10/2007–20/12/2013
G W Harrison 22/12/03 48 1/10/2007–20/12/2013
W S Townsend 22/12/03 44 1/10/2007–20/12/2013
* 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 27.
Short-term awards made under the 1997 Plan and the 2002 Plan in the years 2000 and 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 2004 (570.0 pence per share) in respect of these awards are as follows:
Date Number of Market value
granted shares* £000 Exercise period
G E Tuppen 16/04/02 24,908 142 1/10/2005–16/04/2012
20/12/02 16,902 96 1/10/2006–20/12/2012
D C George 16/04/02 14,848 85 1/10/2005–16/04/2012
20/12/02 10,142 58 1/10/2006–20/12/2012
G W Harrison 18/12/00 10,966 62 1/10/2004–18/12/2007 
16/04/02 13,650 78 1/10/2005–16/04/2012
20/12/02 9,296 53 1/10/2006–20/12/2012
W S Townsend 16/04/02 11,256 64 1/10/2005–16/04/2012
20/12/02 8,028 46 1/10/2006–20/12/2012
* The number of shares have been adjusted to take into account the sub-division of ordinary shares from 10
pence to 5 pence per share on 23 January 2004. Enterprise Inns plc Annual Report 2004 29
Directors’ Remuneration Report
Long-term incentive 
During the year long-term awards granted under the 1997 Plan on 18 December 1998 and 18 December 1999
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 25/11/03 465.13 114,056 531
16/09/04 583.75 72,862 425
D C George 25/11/03 465.13 76,882 358
16/09/04 583.75 46,702 273
G W Harrison 25/11/03 465.13 67,588 314
W S Townsend 16/09/04 583.75 30,742 179
2,080
* The market price at date of exercise and number of shares exercised on 25 November 2003 have been
adjusted to take account of the sub-division of ordinary shares from 10 pence to 5 pence per share on
23 January 2004.
During the year long-term incentives awarded under the 2002 Plan (which were granted subject to the
performance conditions set out on page 24 on a conditional basis were as follows:
Date Market value of
granted ordinary shares Exercise period
G E Tuppen 22/12/03 up to 100% of salary† 1/10/2008–22/12/2013
D C George 22/12/03 up to 100% of salary† 1/10/2008–22/12/2013
G W Harrison 22/12/03 up to 100% of salary† 1/10/2008–22/12/2013
W S Townsend 22/12/03 up to 100% of salary† 1/10/2008–22/12/2013
† Salary is based on the average rate paid to the participant between 1 October 2003 and 30 September 2006.
Market value is taken at the start of the incentive period (461.8 pence as adjusted to take account of the sub-
division of ordinary shares from 10 pence to 5 pence per share on 23 January 2004). 
Details of long-term incentives awarded under the 2002 Plan on a conditional basis in previous years and
outstanding as at 30 September 2004 are as follows:
Date Number of 
granted shares* Exercise period
G E Tuppen 16/04/02 112,149 1/10/2006–16/04/2012
D C George 16/04/02 67,190 1/10/2006–16/04/2012
G W Harrison 16/04/02 61,617 1/10/2006–16/04/2012
W S Townsend 16/04/02 52,913 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 (229.6 pence), as adjusted to take account of the sub-
division. 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.
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 participants between 1 October 2002 and 30 September 2005.
Market value is taken at the start of the incentive period (281.15 pence), as adjusted to take account of the
sub-division of ordinary shares from 10 pence to 5 pence per share on 23 January 2004.  Directors’ Remuneration Report
30 Enterprise Inns plc Annual Report 2004
The performance criteria period for the 1999/00 and 2000/01 long-term incentives awarded under the 1997
Plan have now ended and these awards have become unconditional. The number of shares awarded to the
directors, and still outstanding, and the market value of such shares at 30 September 2004 (570.0 pence per
share) in respect of these awards are as follows:
Date Number of Market Value
granted shares* £000 Exercise period
G E Tuppen 18/12/00 124,990 712 1/10/05–18/12/07
D C George 18/12/00 76,708 437 1/10/05–18/12/07
G W Harrison 18/12/99 41,678 238 1/10/04–18/12/06 
18/12/00 69,602 397 1/10/05–18/12/07
W S Townsend 18/12/00 56,642 323 1/10/05–18/12/07
* The number of shares has been adjusted to take account of the sub-division of ordinary shares from 10 pence
to 5 pence per share on 23 January 2004.
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:
2004 2003
£000 £000
G E Tuppen 446 394
D C George 267 233
G W Harrison 239 214
W S Townsend 220 227
1,172 1,068
On behalf of the Board
A J Stewart
Chairman of the Remuneration Committee
30 November 2004 Enterprise Inns plc Annual Report 2004 31
Group Profit and Loss Account
for the year ended 30 September 2004
2004
2004† Subtotal 2004* 2003*
2004 Acquisition pre-share Share of 2003 Share of
Continuing of of Associate 2004 Continuing Associate 2003
Operations Unique Associate Unique Total Operations Unique Total
Notes £m £m £m £m £m £m £m £m
Turnover 2 487.6 225.1 712.7 — 712.7 480.6 — 480.6
Cost of sales 3 (217.5) (97.5) (315.0) — (315.0) (217.7) — (217.7)
Gross profit 270.1 127.6 397.7 — 397.7 262.9 — 262.9
Administrative expenses (28.5) (11.8) (40.3) — (40.3) (29.7) — (29.7)
Exceptional administrative
expenses 4 — (14.8) (14.8) — (14.8) —— —
Other operating income 5 19.1 7.2 26.3 — 26.3 21.0 — 21.0
Group operating profit 6 260.7 108.2 368.9 — 368.9 254.2 — 254.2
Share of operating profit
in associate — — — 19.0 19.0 — 39.0 39.0
Total operating profit 260.7 108.2 368.9 19.0 387.9 254.2 39.0 293.2
Net profit/(loss) on disposal of
tangible fixed assets 7 0.3 1.0 1.3 0.1 1.4 0.1 (0.2) (0.1)
Profit on ordinary activities 
before interest and taxation 261.0 109.2 370.2 19.1 389.3 254.3 38.8 293.1
Interest receivable and similar income 9.5 — 9.5 10.1 — 10.1
Interest payable and similar charges 9 (167.3) (13.7) (181.0) (102.1) (28.0) (130.1)
Exceptional interest payable and
similar charges 9 (4.6) — (4.6) —— —
(162.4) (13.7) (176.1) (92.0) (28.0) (120.0)
Profit on ordinary activities
before taxation 207.8 5.4 213.2 162.3 10.8 173.1
Tax on profit on ordinary
activities 10 (64.1) (1.6) (65.7) (45.6) (3.0) (48.6)
Profit on ordinary activities
after taxation and attributable
to members of the parent company 143.7 3.8 147.5 116.7 7.8 124.5
Ordinary dividends on
equity shares 12 (41.2) — (41.2) (29.0) — (29.0)
Retained profit for the year 26 102.5 3.8 106.3 87.7 7.8 95.5
Earnings per share — basic 13 43.0p 36.8p‡ 
— adjusted§ 13 47.5p 36.1p‡
— diluted 13 42.3p 36.5p‡
* Represents a contribution of 16.8% of the consolidated results of The Unique Pub Company Limited and its subsidiaries for the full year
ended 30 September 2003 and for the six months from 1 October 2003 to the date of acquisition.
† Represents the full consolidated results of The Unique Pub Company Limited and its subsidiaries for the six months from the date of
acquisition to 30 September 2004. 
‡ Restated for the sub-division of shares from 10 pence to 5 pence per share on 23 January 2004.
§ Excludes exceptional items, goodwill amortisation and a one-off tax credit in 2003.  32 Enterprise Inns plc Annual Report 2004
Note of Historical Cost Profits 
and Losses for the year ended 30 September 2004
Group Statement of Total Recognised
Gains and Losses
for the year ended 30 September 2004
2004 2003
£m £m
Profit for the financial year excluding share of associated undertakings 143.7 116.7
Share of profit in associated undertakings for the financial period 3.8 7.8
Profit for the financial year attributable to members of the parent company 147.5 124.5
Unrealised surplus on revaluation of licensed estate 133.3 283.5
Share of unrealised surplus on revaluation of licensed estate in associate 4.7 9.6
Share of actuarial loss recognised in the defined benefit pension scheme of associate — (0.4)
Actuarial loss recognised in the defined benefit pension scheme of subsidiary (0.7) —
Movement of deferred tax asset related to pension scheme deficit 0.1 —
Total recognised gains and losses relating to the year 284.9 417.2
Prior year adjustment (note 1) 3.5
Total gains and losses recognised since last annual report 288.4
2004 2003
£m £m
Reported profit on ordinary activities before taxation 213.2 173.1
Realised deficits against historical costs on disposal of 
properties revalued in earlier years (1.5) (7.6)
Historical cost profit on ordinary activities before taxation 211.7 165.5
Historical cost profit for the year retained after taxation and dividends 104.8 87.9 Enterprise Inns plc Annual Report 2004 33
Group Balance Sheet
at 30 September 2004
Restated
2004 2003*
Notes £m £m
Fixed assets
Intangible assets 14 79.6 46.3
Tangible assets 15 4,931.8 2,524.8
Investments in associated undertakings 16 0.2 121.3
5,011.6 2,692.4
Current assets
Assets held for resale 17 4.6 4.3
Debtors 18 85.7 39.5
Cash at bank and in hand 146.7 3.9
237.0 47.7
Creditors: amounts falling due within one year 19 (309.4) (306.4)
Net current liabilities (72.4) (258.7)
Total assets less current liabilities 4,939.2 2,433.7
Creditors: amounts falling due after more than one year 20 (3,509.2) (1,276.1)
Provision for liabilities and charges 21 (73.7) (76.2)
Net assets excluding pension liability 1,356.3 1,081.4
Pension liability 22 (2.7) —
1,353.6 1,081.4
Capital and reserves
Called up share capital 25 17.5 17.0
Share premium account 26 485.5 434.8
Revaluation reserve 26 541.8 402.3
Capital redemption reserve 26 7.6 7.6
Merger reserve 26 77.0 77.0
Other reserve — treasury shares 26 (28.1) (4.4)
Profit and Loss Account 26 252.3 147.1
Equity shareholders’ funds 27 1,353.6 1,081.4
* Restated for the change in accounting policy as described in note 1.
Approved by the Board on 30 November 2004 and signed on its behalf by:
G E Tuppen
Directors
D C George } 34 Enterprise Inns plc Annual Report 2004
Balance Sheet
at 30 September 2004
Restated
2004 2003*
Notes £m £m
Fixed assets
Tangible assets 15 2,569.6 2,524.8
Investments 16 695.7 656.9
3,265.3 3,181.7
Current assets
Assets held for resale 17 3.6 4.3
Debtors 18 483.2 64.5
Cash at bank and in hand — 3.9
486.8 72.7
Creditors: amounts falling due within one year 19 (845.5) (996.8)
Net current liabilities (358.7) (924.1)
Total assets less current liabilities 2,906.6 2,257.6
Creditors: amounts falling due after more than one year 20 (1,652.6) (1,297.9)
Provision for liabilities and charges 21 (79.8) (68.8)
1,174.2 890.9
Capital and reserves
Called up share capital 25 17.5 17.0
Share premium account 26 485.5 434.8
Revaluation reserve 26 483.4 374.2
Capital redemption reserve 26 7.6 7.6
Other reserve — treasury shares 26 (28.1) (4.4)
Profit and Loss Account 26 208.3 61.7
Equity shareholders’ funds 1,174.2 890.9
* Restated for the change in accounting policy as described in note 1.
Approved by the Board on 30 November 2004 and signed on its behalf by:
G E Tuppen
Directors
D C George
} Enterprise Inns plc Annual Report 2004 35
Group Statement of Cash Flows
for the year ended 30 September 2004
2004 2003 
Notes £m £m
Net cash inflow from operating activities 6 403.2 269.0
Return on investments and servicing of finance
Interest received 13.1 0.5
Interest paid (171.4) (84.0)
Issue costs of long-term loans (9.9) (1.9)
(168.2) (85.4)
Taxation (36.3) (16.5)
Capital expenditure and financial investment
Payments to acquire public houses (12.9) (16.2)
Payments made on improvements to public houses (50.9) (22.0)
Payments to acquire other fixed assets (1.8) (2.5)
Receipts from sales of tangible fixed assets 110.5 40.8
Payments to acquire investments — own shares (24.3) (2.1)
20.6 (2.0)
Acquisitions and disposals
Purchase of subsidiaries* 16 (247.4) —
Net cash acquired with subsidiaries 16 191.3 —
Expenses of acquisitions paid 16 (2.6) —
(58.7) —
Equity dividends paid (31.8) (25.5)
Cash inflow before financing 128.8 139.6
Financing
Issue of ordinary share capital 51.5 1.4
Share issue costs (0.3) —
Debt due within 1 year — new short-term loans 30.0 130.0
— repayment of short-term loans (160.0) (60.5)
Debt due beyond 1 year — new long-term loans 1,028.2 307.5
— repayment of long-term loans (573.9) (515.0)
Repayment of Deep Discount Bonds* (361.5) —
14.0 (136.6)
Increase in cash 28 142.8 3.0
Reconciliation of net cash flow to movement in net debt
2004 2003
Notes £m £m
Increase in cash in the year 28 142.8 3.0
Cash outflow from change in debt 37.1 138.0
Issue costs of new long-term loans 9.9 2.0
Change in net debt resulting from cash flows 28 189.8 143.0
Acquired with subsidiaries (2,171.0) —
Amortisation of issue costs and discounts/premiums on long-term loans (4.0) (5.6)
Amortisation of interest rate swap 7.7 3.3
Provision against interest rate swap (2.5) —
Write-off of unamortised issue costs (4.6) —
Movement in net debt in the year (1,984.6) 140.7
Net debt at 1 October 28 (1,404.8) (1,545.5)
Net debt at 30 September 28 (3,389.4) (1,404.8)
* Principal elements of cash consideration of purchase of subsidiary totalling £608.9m. 36 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
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’s results and reserves and of Unique’s results and reserves
for the six months to 31 March 2004. On 31 March 2004 the Group acquired the remaining 83.2% of share
capital of Unique and from 1 April 2004 the Group consolidated the results of Unique and its subsidiaries using
the acquisition method. 
Prior to becoming a subsidiary undertaking, Unique was accounted for as an associated undertaking. In
accordance with FRS 2 — ‘Accounting for Subsidiary Undertakings’, and in order to give a true and fair view,
purchased goodwill has been calculated as the sum of the goodwill arising on each purchase of shares in Unique,
being the difference at the date of each purchase between the fair value of the consideration paid and the fair
value of the identifiable assets and liabilities attributable to the interest purchased. 
The statutory method would not give a true and fair view because it would result in the Group’s share of Unique’s
retained profits, actuarial loss on the defined benefit pension scheme and revaluation surplus during the period
that it was an associated undertaking being recharacterised as goodwill. As a result of this, the Group’s share of
Unique’s retained profits and revaluation surplus totalling £40.5 million is included within the total cost of
acquisition when arriving at the goodwill on acquisition. 
This represents a departure from the statutory method, under which goodwill is calculated as the difference
between cost and fair value on the date that Unique became a subsidiary undertaking. FRS2 recognises that,
where an investment in an associate undertaking is increased and it becomes a subsidiary undertaking, in order
to show a true and fair view, goodwill should be calculated on each purchase as the difference between the cost
of that purchase and the fair value at the date of that purchase. 
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.
— It must change the character of the interest rate by converting a variable rate to a fixed rate or vice versa.
Interest rate swaps are fair valued at each year end for disclosure in the accounts. Swaps are shown on the
balance sheet at fair value at acquisition and are not adjusted to reflect the revised revaluation at each year end.
Fair value is amortised during each year in relation to the remaining life of the instrument. If a swap is terminated
early, the gain or loss is recognised immediately in the Profit and Loss Account. Where part or whole of a swap
does not qualify as an effective hedge, the onerous element is held at market value. This market value may be
wholly or partially offset by that amount of fair value already held on the balance sheet. 
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  Enterprise Inns plc Annual Report 2004 37
1 Accounting Policies (continued)
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 other categories of
tangible fixed assets over 3 to 5 years on a straight-line basis.
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.
Notes to the Accounts
at 30 September 2004 38 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004 
1 Accounting Policies (continued)
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 certain employees’ own pension plans in accordance with the terms of their
contracts of employment. The cost of these contributions is charged to the Profit and Loss Account as they are
made. 
A combined defined contribution and defined benefit scheme was acquired with Unique which is now closed to
new members. This scheme is valued every three years using the projected unit method by qualified independent
actuaries. The cost of providing defined benefit pensions is charged to administrative expenses to reflect the
current and past service cost, with the return on the pension scheme investments shown as other financial income
or expenses. Actuarial gains and losses are shown in the statement of total recognised gains and losses. This
treatment represents full adoption of FRS 17. 
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.
Purchase and sale of own shares
For the year ended 30 September 2004 the Group has complied with the provisions of UITF 37 — Purchase and
Sales of Own Shares and UITF 38 — Accounting for ESOP Trusts. These provisions have been adopted in the
accounts and prior year reserves have been restated accordingly. As a result of this, investment in own shares, with
a cost of £4.4 million at 30 September 2003 have been reclassified to other reserve — treasury shares. The
associated provision against this investment of £3.5 million at 30 September 2003 has been reclassified to Profit
and Loss Account reserves. No adjustment has been made to the comparative Profit and Loss Accounts as the
amounts involved are immaterial. The current year Profit and Loss Account charge is £1.6 million. 
2 Turnover
Turnover represents the amounts derived from the provision of goods and services which fall within the Group’s
ordinary activity, stated net of value added tax and discounts.
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:
2004
Continuing 2004 2004
Operations Acquisition Total 2003
£m £m £m £m
Beer and cider sales 328.2 150.7 478.9 323.4
Wines, spirits and minerals sales 28.4 8.0 36.4 27.6
Rents receivable from licensed estate 130.4 66.4 196.8 127.7
Sales to customers by managed houses 0.6 — 0.6 1.9
487.6 225.1 712.7 480.6 Enterprise Inns plc Annual Report 2004 39
3 Cost of Sales
2004
Continuing 2004 2004
operations Acquisition Total 2003
£m £m £m £m
Beer and cider cost of sales 182.9 88.0 270.9 182.0
Wines, spirits and minerals cost of sales 23.5 6.7 30.2 24.1
Leasehold charges 4.4 2.1 6.5 4.5
Cost of sales by managed houses 0.6 — 0.6 1.6
Repairs and maintenance 6.1 0.7 6.8 5.5
217.5 97.5 315.0 217.7
4 Exceptional administrative expenses
2004 2003
£m £m
Redundancy costs 7.4 —
Onerous lease costs 3.5 —
Other 3.9 —
14.8 —
The exceptional administrative expenses incurred in 2004 relate to costs of integrating the operations acquired
with Unique. 
5 Other operating income
2004
Continuing 2004 2004
operations Acquisition Total 2003
£m £m £m £m
Property income other than rent from
the licensed estate 0.8 0.8 1.6 0.8
Income from amusement and other machines 18.3 6.4 24.7 20.2
19.1 7.2 26.3 21.0
Notes to the Accounts
at 30 September 2004 40 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
6 Operating profit
(a) This is stated after charging:
2004 2003
£m £m 
Auditors’ remuneration — audit fees 0.3 0.1
— non-audit fees 0.2 0.2
Amortisation of goodwill 3.4 2.5
Depreciation of owned fixed assets 1.6 0.6
Depreciation of short leasehold properties 1.1 0.8
Operating lease rentals — buildings 5.7 3.3
Operating lease rentals — plant and machinery 0.4 —
In addition to the above, £0.7 million was paid to the auditors during the year for professional services in
conjunction with the acquisition of Unique. This expenditure has been capitalised.
(b) Reconciliation of operating profit to net cash inflow from operating activities:
2004 2003
£m £m
Operating profit 368.9 254.2
Depreciation and amortisation 6.1 3.9
Share-based expense recognised in operating profit 1.6 1.8
(Increase)/decrease in debtors (7.3) 12.0
Increase/(decrease) in creditors 31.5 (6.3)
Decrease in assets held for resale 2.4 3.4
Net cash inflow from operating activities 403.2 269.0
Cash outflows in respect of exceptional administrative expenses were £2.4 million (2003 — £4.4 million).
7 Net profit/(loss) on the disposal of tangible fixed assets
2004
Continuing 2004 2004
Operations Acquisition Total 2003
£m £m £m £m
Profits on disposal of tangible fixed assets 13.0 4.5 17.5 7.2
Losses on disposal of tangible fixed assets (4.8) (1.9) (6.7) (4.2)
Provision for loss on disposal of fixed assets (7.9) (1.6) (9.5) (2.9)
Net profit on disposal of tangible fixed assets 0.3 1.0 1.3 0.1
Share of profit/(loss) on disposal of tangible fixed
assets in associate 0.1 (0.2)
1.4 (0.1)
There is no taxation effect of the above exceptional items due to the application of capital gains rollover relief. Enterprise Inns plc Annual Report 2004 41
8 Staff costs
2004 2003
£m £m
Wages and salaries 22.6 15.6
Social security costs 2.5 2.1
Other pension costs 1.8 1.2
26.9 18.9
The average monthly number of employees during the year was 507 (2003 — 375). This comprised an average of
501 (2003 — 360) employees of the Group and a number of retail staff of managed houses.
Staff comprised:
2004 2003
No. No.
Operations staff 224 182
Administration staff 283 193
507 375
Details of directors’ remuneration are set out on pages 23 to 30.
9 Interest payable and similar charges
2004 2003
£m £m
Bank loans and overdrafts 30.8 48.0
Debentures/secured bonds 123.0 48.0
Other interest payable and finance costs 4.2 0.5
Amortisation of issue costs and discounts on debt instruments 9.3 5.6
167.3 102.1
Exceptional finance costs 4.6 —
Share of interest payable in associate 13.7 28.0
The exceptional finance costs incurred during 2004 relate to the write-off of unamortised finance costs following
the refinancing of senior debt facilities upon the acquisition of Unique. The tax effect of this is £1.4 million. 
Notes to the Accounts
at 30 September 2004 42 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
10 Taxation
a) Tax on profit on ordinary activities
The tax charge is made up as follows:
2004 2003
Current tax £m £m
UK corporation tax 50.7 25.0
Share of associate’s current tax 0.4 (2.5)
Adjustments in respect of prior years (3.3) (4.9)
Total current tax (note 10b) 47.8 17.6
Deferred tax
Origination and reversal of timing differences (note 21) 16.7 25.5
Share of associate’s deferred tax 1.2 5.5
Total deferred tax 17.9 31.0
Tax on profit on ordinary activities 65.7 48.6
b) Factors affecting the tax charge for the year
2004 2003
£m £m
Group profit on ordinary activities before tax 213.2 173.1
Profit on ordinary activities before tax at 30% (2003 — 30%) 64.0 51.9
Effects of:
Expenses not deductible for tax purposes 0.2 2.1
Tax allowances in excess of depreciation (7.6) (7.9)
Utilisation of tax losses — (2.6)
Short-term timing differences (5.2) (21.0)
Adjustments in respect of prior years (3.3) (4.9)
Prior year associate adjustment (0.3) —
Total current tax charge (note 10a) 47.8 17.6
c) Factors that may affect future tax charges
Other factors that my affect future tax charges include the availability of accelerated tax depreciation and
changes in legislation.
11 Profit attributable to members of the parent company
The profit after tax dealt with in the accounts of the parent company was £189.9 million (2003 — £69.5 million).
Retained profit for the year amounted to £148.7 million (2003 — £40.5 million).
12 Dividends
2004 2003
£m £m
Ordinary dividends on equity shares:
Interim paid 3.6 pence (2003 — 2.85 pence*) 12.5 9.6
Final proposed 8.4 pence (2003 — 5.7 pence*) 28.7 19.4
41.2 29.0
* Prior year dividends per share have been restated to take account of the sub-division of ordinary shares on 
23 January 2004.
The dividends relating to the shares held by the Employee Benefit Trust have been waived.  Enterprise Inns plc Annual Report 2004 43
13 Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on earnings of £147.5 million (2003 — £124.5
million) and on 342,806,374 (2003 — 337,987,140*) 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 the directors believe reflects the underlying performance of the Group, is based
on earnings adjusted for the effects of exceptional items, net of tax and goodwill amortisation of £163.0 million
(2003 — £122.2 million which excluded a one-off tax credit) and on 342,806,374 (2003 — 337,987,140*) 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: 2004 2003
£m £m
Profit after tax 147.5 124.5
Exceptional administrative costs 14.8 —
Goodwill amortisation 3.4 2.5
Exceptional finance costs 4.6 —
Net (profit)/loss on disposal of tangible fixed assets (1.4) 0.1
Taxation credit — (4.9)†
Taxation impact of exceptional costs (5.9) —
Adjusted Earnings 163.0 122.2
The diluted earnings per share is based on profit for the year of £147.5 million (2003 — £124.5 million), and on
348,935,535 (2003 — 341,402,486*) ordinary shares, calculated as follows:
2004 2003*
Basic weighted average number of shares 342,806,374 337,987,140
Executive share option plan 1,840,357 1,524,494
Enterprise Inns Quest sharesave scheme 548,599 409,372
Long-term and short-term incentive plans 3,740,205 1,481,480
348,935,535 341,402,486
* Restated for the sub-division of shares from 10 pence to 5 pence per share on 23 January 2004.
† A one-off tax credit which arose following settlement of prior years’ tax computations.
14 Intangible fixed assets
Group
Goodwill £m
Cost:
At 1 October 2003 49.7
Additions (note 16) 36.7
At 30 September 2004 86.4
Amortisation:
At 1 October 2003 3.4
Provided during the year 3.4
At 30 September 2004 6.8
Net book value:
At 30 September 2004 79.6
At 30 September 2003 46.3
Goodwill arising on the acquisitions of both The Unique Pub Company Limited and The Laurel Pub Group Limited
is being amortised evenly over the directors’ estimate of its useful economic life of 20 years.
Notes to the Accounts
at 30 September 2004 44 Enterprise Inns plc Annual Report 2004
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 2003 2,360.7 136.7 17.9 13.8 2,529.1
Reclassification (1.4) (4.3) 5.7 — —
Additions 59.0 2.9 1.0 2.1 65.0
Acquisition of subsidiary
undertaking (note 16) 2,163.2 145.0 11.0 2.4 2,321.6
Provision for loss on disposal (4.8) (3.1) (1.6) — (9.5)
Revaluation 131.0 2.2 0.1 — 133.3
Disposals (91.4) (7.6) (0.7) (1.0) (100.7)
At 30 September 2004 4,616.3 271.8 33.4 17.3 4,938.8
Depreciation:
At 1 October 2003 — — 2.9 1.4 4.3
Charge for the year — — 1.1 1.6 2.7
At 30 September 2004 — — 4.0 3.0 7.0
Net book value:
At 30 September 2004 4,616.3 271.8 29.4 14.3 4,931.8
At 30 September 2003 2,360.7 136.7 15.0 12.4 2,524.8
The value of fixed assets securitised as at 30 September 2004 was £2,358.6 million.
Company
Cost or valuation:
At 1 October 2003 2,360.7 136.7 17.9 13.8 2,529.1
Reclassifications (1.4) (4.3) 5.7 — —
Additions 41.4 1.7 0.9 1.3 45.3
Provision for loss on disposal (4.8) (2.3) (0.8) — (7.9)
Revaluations 102.5 3.6 — — 106.1
Disposals (78.5) (18.4) (0.4 (0.1) (97.4)
At 30 September 2004 2,419.9 117.0 23.3 15.0 2,575.2
Depreciation:
At 1 October 2003 — — 2.9 1.4 4.3
Charge for the year — — 0.7 0.6 1.3
At 30 September 2004 — — 3.6 2.0 5.6
Net book value:
At 30 September 2004 2,419.9 117.0 19.7 13.0 2,569.6
At 30 September 2003 2,360.7 136.7 15.0 12.4 2,524.8
Notes to the Accounts
at 30 September 2004 Enterprise Inns plc Annual Report 2004 45
15 Tangible fixed assets (continued)
(a) Assets held for use by lessees under operating leases are detailed below. 
Group Company
£m £m
At 30 September 2004
Gross book value 4,721.5 2,434.8
Accumulated depreciation (3.3) (2.8)
Net book value 4,718.2 2,432.0
At 1 October 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
(b) With the exception of properties identified for disposal and those valued by the directors, other licensed
premises were valued at their existing use value by Humberts Leisure Limited and Christie & Co., external
Chartered Surveyors, as at 30 September 2004. Properties identified for disposal are valued by the directors at
their open market value for sale. 
The net book value of licensed premises comprises:
Group Company
2004 2003 2004 2003
£m £m £m £m
Licensed estate at valuation:
Freehold properties 4,589.0 2,221.7 2,411.3 2,221.7
Long leasehold properties 270.0 115.4 117.0 115.4
Short leasehold properties 14.4 2.5 4.9 2.5
4,873.4 2,339.6 2,533.2 2,339.6
Licensed estate at cost:
Freehold properties 27.3 138.9 8.6 138.9
Long leasehold properties 1.8 21.3 — 21.3
Short leasehold properties 15.0 12.6 14.8 12.6
44.1 172.8 23.4 172.8
4,917.5 2,512.4 2,556.6 2,512.4
The historical cost and net book value of the licensed premises included at valuation is as follows:
Long Short
Freehold leasehold leasehold
properties properties properties
Group £m £m £m
At 30 September 2004 4,118.1 251.8 12.6
At 30 September 2003 1,864.9 98.3 2.4
Long Short
Freehold leasehold leasehold
properties properties properties
Company £m £m £m
At 30 September 2004 1,949.7 97.2 2.8
At 30 September 2003 1,864.9 98.3 2.4
Notes to the Accounts
at 30 September 2004 46 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
16 Investments
Investment in 
Own associated
shares undertaking Loans to
(listed) (unlisted) associates Total
Group £m £m £m £m
Cost:
At 1 October 2003 as previously stated 4.4 33.1 88.2 125.7
Transfer to reserves* (4.4) — — (4.4)
At 1 October 2003 restated — 33.1 88.2 121.3
Additions — — 5.1 5.1
Share of profit in associate — 3.8 — 3.8
Share of revaluation of licensed estate in associate — 4.7 — 4.7
Reclassification of associate acquisition costs — (0.9) 0.9 —
Transferred to subsidiary undertakings† — (40.5) — (40.5)
Repayment of loan to associate — — (94.2) (94.2)
At 30 September 2004 — 0.2 — 0.2
Provision:
At 1 October 2003 as previously stated 3.5 — — 3.5
Transfer to reserves* (3.5) — — (3.5)
At 1 October 2003 restated ————
At 30 September 2004 ————
Net book value:
At 30 September 2004 — 0.2 — 0.2
At 30 September 2003 restated — 33.1 88.2 121.3
* Restated for the change in accounting policy as described in note 1.
† The purchase of the remaining shares not already owned in Unique was completed during the year. The
investment is now accounted for as a wholly owned subsidiary and The Unique Pub Company Limited and its
subsidiaries are now consolidated into the Group accounts using acquisition accounting. The acquisition was
accounted for using the provisions of FRS2 as described in note 1.  Enterprise Inns plc Annual Report 2004 47
16 Investments (continued)
Own Associated Subsidiary
shares undertakings undertakings Loans to
(listed) (unlisted) shares associates Total
Company £m £m £m £m £m
Cost:
At 1 October 2003 as
previously stated 4.4 0.2 568.5 88.2 661.3
Transfer to reserves* (4.4) — — — (4.4)
At 1 October 2003 restated — 0.2 568.5 88.2 656.9
Additions — — 183.8 5.1 188.9
Transfer to current assets — — (33.0) — (33.0)
Reclassification of associate acquisition costs — (0.9) — 0.9 —
Transfer arising on disposal of associate† — 0.7 — — 0.7
Repayment of loan to associate — — — (94.2) (94.2)
At 30 September 2004 — — 719.3 — 719.3
Provision:
At 1 October 2003 as
previously stated 3.5 — — — 3.5
Transfer to reserves* (3.5) — — — (3.5)
At 1 October 2003 restated — — — — —
Provision in the year — — (23.6) — (23.6)
At 30 September 2004 — — (23.6) — (23.6)
Net book value:
At 30 September 2004 — — 695.7 — 695.7
At 30 September 2003 restated — 0.2 568.5 88.2 656.9
* Restated for the change in accounting policy as described in note 1.
† The purchase of the remaining shares not owned in Unique was completed during the year. The investment is
now accounted for as a wholly owned subsidiary of the Group and consolidated into the Group accounts using
acquisition accounting. 
Notes to the Accounts
at 30 September 2004 48 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
16 Investments (continued)
Details of the investments in which 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 criteria, only the
undertakings whose results or financial position principally affect the accounts are shown, as allowed under s231
of the Companies Act. 
Country of Proportion
registration of voting
(or incorporation) rights and Nature of
Name of company and operation Holding shares held business
Subsidiary undertakings:
Directly held by Enterprise Inns plc:
Enterprise Inns Holding Company England Ordinary 100% Investment holding
Limited shares company
Indirectly held by Enterprise Inns plc:
The Unique Pub Company Limited England Ordinary 100% Investment holding
shares company
The Unique Pub Funding Company England Ordinary 100% Investment holding
Limited shares company
SupplyLine Services Limited England Ordinary 100% Supply of beverages to 
shares licensed properties
Thame Pub Management Limited England Ordinary 100% Management of licensed
shares properties
Unique Pub Properties Limited England Ordinary 100% Ownership of licensed
shares properties
The Unique Pub Finance Company Plc England Ordinary 100% Financing acquisitions
shares of licensed properties
Cumulative 100%
Reedemable
Preference 
shares
RetailLink Management Limited England Ordinary 100% Management of licensed
shares properties
Voyager Pub Group Limited England Ordinary 100% Ownership of licensed
shares properties Enterprise Inns plc Annual Report 2004 49
16 Investments (continued)
Analysis of the acquisition of The Unique Pub Company Limited: 
On 31 March 2004 the Group acquired the remaining 83.2% equity share of The Unique Pub Company Limited
(‘Unique’). This comprises the acquisition of this company and all of its subsidiary undertakings. The cash
purchase price of £608.9 million comprises £247.4 million paid for shares and £361.5 million paid for the
redemption of Deep Discount Bonds and accrued interest not already owned by the Group. The net assets at the
date of acquisition are analysed as follows:
Book Fair value
Value Reclassification Adjustments to the Group 
£m £m Notes £m Notes £m
Intangible fixed assets (78.9) — 78.9 (2) —
Tangible fixed assets 2,294.9 — 26.7 (3,4) 2,321.6
Assets held for resale 2.3 — — 2.3
Debtors due within one year 39.9 — (0.9) (5) 39.0
Cash 191.3 — — 191.3
Creditors due within one year — other (51.8) — 0.4 (5,6) (51.4)
Creditors due within one year — bank loans (13.7) (455.7) (1) (12.7) (5,7) (482.1)
Creditors due after more than one year (2,165.4) 455.7 (1) (74.0) (5,7) (1,783.7)
Provisions for liabilities and charges (6.0) — — (6.0)
Deferred taxation 6.2 — 18.7 (8) 24.9
Pension liability (0.4) — (1.7) (5) (2.1)
Net assets 218.4 — 35.4 253.8
Goodwill 36.7
Total consideration 290.5
Total consideration comprises the following: £m
Cash paid to acquire Unique 247.4
Carrying value of investment in associate 40.5
Expenses of acquisition 2.6
Total consideration 290.5
(1) Reclassification of Deep Discount Bonds and accrued interest to creditors due within one year, of which
£361.5m relates to creditors external to the Group. This was repaid on acquisition.
(2) Elimination of negative goodwill.
(3) The licensed premises of Unique were valued by independent valuers at their open market value for existing
use as at the date of acquisition.
(4) Alignment of accounting policies in respect of capitalisation of computer software costs.
(5) Reassessment of assets and liabilities existing in Unique at the date of acquisition in respect of the valuation
of trade debtors, taxation and creditors due within, and after more than, one year.
(6) Liabilities crystallising on change of ownership.
(7) Mark to market valuation of bonds and swaps as at 31 March 2004. The valuation was completed by JC
Rathbones Associates Limited, independent valuers.
(8) Deferred tax in respect of notes 5, 6 and 7.
Notes to the Accounts
at 30 September 2004 50 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
16 Investments (continued)
With respect to the cash flow statement for the year ending 30 September 2004, Unique has contributed £128.1
million to net cash inflow from operating activities, £61.1 million outflow to return of investments and servicing of
finance, £2.1 million outflow to taxation, £13.8 million outflow to capital expenditure and financial investment and
£94.6 million outflow to financing. 
The summarised Consolidated Profit and Loss Account for Unique from the beginning of its financial year on 
1 October 2003 until the date of acquisition on 31 March 2004 is as follows:
Summarised Consolidated Profit and Loss Account
Six months ended 31 March 2004
Total* Enterprise share*
100% 16.8%
£m £m
Turnover 214.4 36.1
Operating profit 112.9 19.0
Profit on sale of fixed assets 0.4 0.1
Net interest payable (81.3) (13.7)
Profit on ordinary activities before tax 32.0 5.4
Taxation (9.8) (1.6)
Profit after tax 22.2 3.8
Consolidated total recognised gains and losses for this period were as follows:
Consolidated Statement of Total Recognised Gains and Losses 
Six months ended 31 March 2004 
Total* Enterprise share*
100% 16.8%
£m £m
Profit for the period 22.2 3.8
Unrealised surplus on revaluation of licensed estate 28.0 4.7
Total recognised gains and losses for the period 50.2 8.5
Profit after tax for the financial year ended 30 September 2003 was £47.0 million.*
The securitisation of assets in Unique Pub Properties Limited (UPP) (part of the group acquired with Unique)
means that there are restrictions over the distribution of cash outside of this company. All cash held in bank
accounts as detailed in the Cash Management Agreement is securitised. All monies received or held by UPP will
be applied in accordance with the Pre-Enforcement Priority of Payments. Only on satisfaction of various criteria
within this agreement, may UPP distribute excess cash to other persons including other group companies. 
* Enterprise’s share of Unique’s profits for 2003 and 2004 has been adjusted to reflect changes made for different
accounting policies. These figures have been adjusted to reflect these changes.
17 Assets held for resale
Group Company
2004 2003 2004 2003
£m £m £m £m
Fixtures and fittings and stock purchased
from tenants 4.6 4.3 3.6 4.3 Enterprise Inns plc Annual Report 2004 51
18 Debtors
Group Company
2004 2003 2004 2003
£m £m £m £m
Amounts falling due within one year:
Trade debtors 68.9 26.6 35.8 26.6
Amounts owed by subsidiary undertakings — — 433.9 25.0
Other debtors 1.9 2.5 0.2 2.5
Prepayments and accrued income 13.5 7.4 11.9 7.4
84.3 36.5 481.8 61.5
Amounts falling due after more than one year:
Trade debtors 1.1 2.7 1.1 2.7
Other debtors 0.3 0.3 0.3 0.3
85.7 39.5 483.2 64.5
19 Creditors: amounts falling due within one year
Group Company
2004 2003 2004 2003
£m £m £m £m
Bank overdraft — — 1.1 —
Loans — secured 4.6 132.6 6.6 135.5
Loans — securitised 22.3 — — —
Trade creditors 37.2 9.6 10.9 9.6
Amounts due to subsidiary undertakings — — 634.0 687.5
Corporation tax 31.8 25.5 21.1 25.5
Other creditors including taxation and
social security 43.8 37.2 40.5 37.2
Accruals and deferred income 141.0 82.1 102.6 82.1
Proposed dividend 28.7 19.4 28.7 19.4
309.4 306.4 845.5 996.8
20 Creditors: amounts falling due after more than one year
Group Company
2004 2003 2004 2003
£m £m £m £m
Loans — secured 584.2 426.0 472.3 447.8
Loans — securitised 1,720.6 — — —
Debentures — secured 1,204.4 850.1 1,180.3 850.1
3,509.2 1,276.1 1,652.6 1,297.9
Notes to the Accounts
at 30 September 2004 52 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
21 Provisions for liabilities and charges
Group Company
2004 2003 2004 2003
£m £m £m £m
Deferred tax (Note 21a) 67.7 76.2 79.8 68.8
Onerous lease (Note 21b) 6.0 — — —
73.7 76.2 79.8 68.8
a) Deferred Tax
Group Company
£m £m
At 1 October 2003 76.2 68.8
Deferred tax charge in the Profit and Loss Account 16.7 11.0
Acquired with subsidiary undertaking (25.2) —
At 30 September 2004 67.7 79.8
The major components of the amounts provided are as follows:
Group Company
2004 2003 2004 2003
£m £m £m £m
Accelerated capital allowances 88.3 72.0 79.3 72.0
Short-term timing differences (20.6) 4.2 0.5 (3.2)
Provision for deferred tax 67.7 76.2 79.8 68.8
The amounts of deferred tax not provided in the accounts are as follows:
Group Company
2004 2003 2004 2003
£m £m £m £m
Rolled over gains 8.5 9.4 8.5 9.4
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. 
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
£234 million (2003 — £63 million) for the Group and at £72 million (2003 — £63 million) for the Company.
b) Onerous lease provision
Group Company
£m £m
At 1 October 2003 — —
Acquired with subsidiary undertaking (note 16) 6.0 –
Charge for the year 3.5 —
Expenditure (3.5) –
At 30 September 2004 6.0 —
The provision is expected to be utilised over the next seven years.  Enterprise Inns plc Annual Report 2004 53
22 Pension liability 
Group Company
£m £m
Gross pension provision
At 1 October 2003 — —
Pension liability acquired on purchase of subsidiary undertaking 3.1 —
Provision during the year 0.7 —
At 30 September 2004 3.8 —
Related deferred tax asset
At 1 October 2003 — —
Acquired with subsidiary undertaking (1.0) —
Provision during the year (0.1) —
At 30 September 2004 (1.1) —
Net pension liability
At 30 September 2004 2.7 —
At 30 September 2003 — —
Pension scheme
RetailLink Management Limited (a subsidiary company acquired with Unique) established a Pension Plan for its
employees on 1 January 1999. The plan has defined contribution and defined benefit schemes. The plan is now
closed and under the projected unit method the current service cost will increase as the members of the scheme
approach retirement. Further contributions of £80,000 per month in addition to the employer’s regular
contribution are being made in order to eliminate the deficiency in the scheme.
The most recent full actuarial valuation of the defined benefit section of the RetailLink Management Limited
Pension Plan was at 5 April 2002. This has been updated to 30 September 2004. The valuation used the projected
unit method and was carried out by William J Mercer, independent professionally qualified actuaries. The
principal assumptions made by the actuaries were:
2004
%
Rate of increase in salaries 3.90
Rate of increase of pensions in payment 3.30
Rate of increase of pensions in deferment 2.90
Discount rate 5.50
Inflation assumption 2.90
The assets in the scheme and the expected rate of return were:
Rate expected for six months At 30 September
ended 30 September 2004 2004
(annualised) £m
Equities 6.50% 9.4
Bonds 4.70% 3.1
Other 4.70% —
Total market value of assets 12.5
Present value of liabilities (16.3)
Deficit in the scheme (3.8)
Related deferred tax asset 1.1
Net pension liability (2.7)
Notes to the Accounts
at 30 September 2004 54 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
22 Pension liability (continued)
Analysis of the amount charged to operating profit in respect of the defined benefit section of the Pension Plan
Six months ended 
30 September 2004
£m
Current service cost — administrative costs 0.3
Curtailment cost — exceptional administrative costs 0.4
Total operating charge 0.7
Analysis of the amount (charged)/credited to other financial (cost)/income
Six months ended
30 September 2004
£m
Expected return on pension scheme assets 0.4
Interest on pension liabilities (0.4)
Net return —
Analysis of the amount recognised in the Statement of Total Recognised Gains and Losses
Six months ended
30 September 2004
£m
Actual return less expected return on assets 0.2
Changes in assumptions 0.5
Actuarial loss recognised in the Statement of Total Recognised Gains and Losses 0.7
Movement in deficit during the period
Six months ended
30 September 2004
£m
Deficit in scheme at start of period (3.4)
Movement in period:
Current service cost (0.3)
Contributions 1.0
Curtailment cost (0.4)
Actuarial loss (0.7)
Deficit in scheme at end of period (3.8)
History of experience gains and losses:
Six months ended
30 September 2004
Difference between expected and actual return on scheme assets:
Amount (£m) (0.2)
Percentage of scheme assets -2%
Experience gains and losses on scheme liabilities:
Amount (£m) —
Percentage of scheme liabilities 0%
Total amount recognised in Statement of Total Recognised Gains and Losses:
Amount (£m) (0.7)
Percentage of scheme liabilities -4% Enterprise Inns plc Annual Report 2004 55
23 Financial Instruments
The Group’s financial instruments, other than derivatives, comprise bank loans, a debenture, secured bonds, securitised
bonds 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 56 to 61 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. 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 100% of the Group’s borrowings were at fixed interest rates (2003 — 99%). 
The interest rate profile of financial liabilities of the Group at 30 September was as follows:
Fixed rate Floating rate
financial financial
Total liabilities liabilities
£m £m £m
2004 3,536.1 3,536.1 —
Sterling
2003
Sterling 1,408.7 1,398.7 10.0
2004 2003
£m £m
Book value of fixed rate financial liabilities 3,536.1 1,398.7
Weighted average period of fixed interest rate financial liabilities 13.9 years 15.7 years
Weighed average interest rate of fixed rate financial liabilities 6.95% 6.87%
The amounts stated above are shown net of issue costs, discounts and premiums and include swaps. 
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 79% of the Group’s
borrowings were due to mature in more than five years (2003 — 60%). The maturity of the Group’s debt and of
the undrawn committed borrowings is set out in note 24(b) and 24(c). Maturity of the Group’s funding structure is
reviewed throughout the year.
All financial instruments were valued at market value as at 30 September 2004 by JC Rathbones, independent
valuers.
Notes to the Accounts
at 30 September 2004 56 Enterprise Inns plc Annual Report 2004
23 Financial Instruments (continued)
The fair values of financial assets and liabilities are as follows:
2004 2004 2003 2003
Book Value Fair Value Book Value Fair Value
£m £m £m £m
Senior Debt and Loan Notes (430.1) (435.0) (555.2) (560.0)
Debenture – issued 3 February 1999 (59.2) (56.3) (59.0) (55.9)
Secured bond – issued 9 May 2000 (124.1) (133.2) (124.1) (134.4)
Secured bond – issued 15 February 2001 (123.3) (133.6) (123.2) (134.8)
Secured bond – issued 26 February 2002 (271.8) (282.0) (271.7) (284.0)
Secured bond – issued 3 March 2003 (601.9) (615.1) (245.7) (261.1)
Securitised bond A1 – issued 30 March 1999 (158.3) (159.4) ——
Securitised bond A2R – issued 20 Sept 2002 (271.6) (275.1) ——
Securitised bond A3 – issued 30 March 1999 (460.9) (469.9) ——
Securitised bond A4 – issued 20 Sept 2002 (360.6) (364.2) ——
Securitised bond M – issued 30 March 1999 (251.5) (255.6) ——
Securitised bond N – issued 20 Sept 2002 (198.1) (209.7) ——
Cash 146.7 146.7 3.9 3.9
Bridging facility – issued 30 March 2004 (154.1) (154.9) ——
Loans to Associates —— 88.2 88.2
Subtotal (3,318.8) (3,397.3) (1,286.8) (1,338.1)
£550m interest rate swap expiring 1 June 2012 (28.7) (51.4) (29.8) (70.2)
£40m interest rate swap expiring 30 December 2012 (10.6) (9.2) ——
£98m interest rate swap expiring 30 December 2012 (11.1) (10.6) ——
£109m interest rate swap expiring 30 December 2012 (11.3) (10.7) ——
£150m interest rate swap expiring 30 September 2013 (8.1) (6.9) ——
£38m interest rate swap expiring 30 September 2010 (0.8) (0.6) ——
£154.9m interest rate swap expiring 31 December 2005 — 0.3 ——
(3,389.4) (3,486.4) (1,316.6) (1,408.3)
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 2004 is
£18.5 million (2003 — £40.4 million). 
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 £3.5 million. The remaining
£15.0 million will be realised in a period greater than one year. 
Notes to the Accounts
at 30 September 2004 Enterprise Inns plc Annual Report 2004 57
23 Financial Instruments (continued)
Gains and losses on instruments used for hedging are not recognised until the exposure that is being hedged itself
is recognised. Unrecognised gains and losses and deferred gains and losses on financial instruments used for
hedging are as follows:
Gains Losses Total
2004 £m £m £m
Gains and losses unrecognised at 30 September 2004 0.3 (18.8) (18.5)
Of which:
Gains and losses expected to be recognised in the 
Profit and Loss Account in 2005 0.2 (3.7) (3.5)
Gains Losses Total
2003 £m £m £m
Gains and losses unrecognised at 30 September 2003 — (40.4) (40.4)
Of which:
Gains and losses expected to be recognised in the 
Profit and Loss Account in 2004 — (6.5) (6.5)
24 Loans
Group Company
2004 2003 2004 2003
£m £m £m £m
(a) Details of loans are as follows:
Senior debt finance
Revolving loan repayable in full on 31 March 2009. 
Interest is payable at LIBOR (plus mandatory costs)
plus a margin which is capped at 2.0%. The Company is
currently paying a margin of 180 basis points. 120.0 — 120.0 —
Term loan repayable by six-monthly instalments.
A proportion was repaid on 15 April 2004. The
loan is repayable in full on 31 March 2009. Interest is 
payable at LIBOR (plus mandatory costs) plus a margin 
which is capped at 2.0%. The Company is currently 
paying a margin of 180 basis points. 315.0 — 315.0 —
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 
paid a margin of 155 basis points. — 150.0 — 150.0
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 paid
a margin of 155 basis points. — 310.0 — 310.0
Notes to the Accounts
at 30 September 2004 58 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
24 Loans (continued)
Group Company
2004 2003 2004 2003
£m £m £m £m
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 paid a margin of 155 basis points. — 100.0 — 100.0
435.0 560.0 435.0 560.0
Senior debt issue costs (4.9) (4.8) (4.9) (4.8)
430.1 555.2 430.1 555.2
6% debenture repayable by 3 February 2014 60.0 60.0 60.0 60.0
Discount on the issue of secured bonds (0.4) (0.5) (0.4) (0.5)
Debenture issue costs (0.4) (0.5) (0.4) (0.5)
6.875% secured bonds repayable on 9 May 2025 125.0 125.0 125.0 125.0
Premium on the issue of secured bonds 0.1 0.1 0.1 0.1
Secured bonds issue costs (1.0) (1.0) (1.0) (1.0)
6.875% secured bonds repayable on 15 February 2021 125.0 125.0 125.0 125.0
Discount on the issue of secured bonds (0.8) (0.8) (0.8) (0.8)
Secured bonds issue costs (0.9) (1.0) (0.9) (1.0)
6.375% secured bonds repayable on 26 September 2031 275.0 275.0 275.0 275.0
Discount on the issue of secured bonds (1.0) (1.0) (1.0) (1.0)
Secured bonds issue costs (2.2) (2.3) (2.2) (2.3)
6.5% secured bonds repayable on 6 December 2018 600.0 250.0 600.0 250.0
Premium on the issue of secured bonds 6.2 (2.4) 6.2 (2.4)
Secured bonds issue costs (4.3) (1.9) (4.3) (1.9)
A1 – LIBOR + 0.75% secured bonds repayable on 
30 September 2010 159.4 — — —
Fair value balance on the bonds 0.7 — — —
Discount on the issue of secured bonds (0.3) — — —
Secured bonds issue costs (1.5) — — —
A2R – LIBOR + 0.48% secured bonds repayable on 
30 September 2013 275.1 — — —
Fair value balance on the bonds (0.3) — — —
Discount on the issue of secured bonds — — — —
Secured bonds issue costs (3.2) — — — Enterprise Inns plc Annual Report 2004 59
Notes to the Accounts
at 30 September 2004
24 Loans (continued)
Group Company
2004 2003 2004 2003
£m £m £m £m
A3 – 6.542% secured bonds repayable on 30 June 2027 435.0 — — —
Fair value balance on the bonds 38.2 — — —
Discount on the issue of secured bonds — — — —
Secured bonds issue costs (12.3) — — —
A4 – 5.659% secured bonds repayable on 30 June 2027 365.0 — — —
Fair value balance on the bonds 0.4 — — —
Discount on the issue of secured bonds — — — —
Secured bonds issue costs (4.8) — — —
M – 7.395% secured bonds repayable on 30 March 2024 225.0 — — —
Fair value balance on the bonds 33.7 — — —
Discount on the issue of secured bonds — — — —
Secured bonds issue costs (7.2) — — —
N – 6.464% secured bonds repayable on 30 March 2032 190.0 — — —
Fair value balance on the bonds 10.7 — — —
Discount on the issue of secured bonds — — — —
Secured bonds issue costs (2.6) — — —
Bridging facility repayable 31 December 2005 154.9 — — —
Issue costs (0.8) — — —
Overdraft — — 1.1 —
Total loans before interest rate swaps 3,465.5 1,378.9 1,611.5 1,378.9
Fair value of the swaps established at acquisition:
£550m interest rate swap expiring on 1 June 2012,
coupon 5.75% until 1 December 2004, thereafter 
6.66% until 1 June 2012 28.7 29.8 48.8 54.5
£40m interest rate swap expiring 30 December 2012,
coupon 7.934% 10.6 — — —
£98m interest rate swap expiring 30 December 2012, 
coupon 7.873% 11.1 — — —
£109m interest rate swap expiring 30 December 2012,
coupon 7.873% 11.3 — — —
£150m interest rate swap expiring 30 September 2013, 
coupon 5.885% 8.1 — — —
£38m interest rate swap expiring 30 September 2010, 
coupon 5.660% 0.8 — — —
£154.9m interest rate swap expiring 31 December 2005,
coupon 4.837% — — — —
3,536.1 1,408.7 1,660.3 1,433.4 60 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
24 Loans (continued)
The debenture issued on 3 February 1999 is secured by fixed charges over 225 properties created in a trust deed
dated 3 February 1999.
The secured bonds issued on 9 May 2000 are secured by fixed charges over 422 properties created in a trust deed
dated 9 May 2000.
The secured bonds issued on 15 February 2001 are secured by fixed charges over 369 properties created in a trust
deed dated 15 February 2001.
The secured bonds issued on 26 February 2002 are secured by fixed charges over 693 properties created in a trust
deed dated 26 February 2002.
The secured bonds issued on 3 March 2003 are secured by fixed charges over 1,438 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, excluding Enterprise Inns Holding Company Limited and its subsidiary companies,
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.
The A1, A2R, A3, A4, M and N loans are secured by:
1) A first fixed charge over the securitised estate in the form of:
 Title and interest in all pubs
 Income generated by the pubs
 Plant and machinery owned by The Unique Pub Finance Company Plc (UPFC)
 UPFC's bank accounts, eligible investments and intellectual property
 All licences and consents held by UPFC in connection with the business
2) Right, title, interest and benefit, present and future over the following:
 Agreements (asset, cash, beer supply, loan, hedge, estate purchase and bank account)
 SupplyLine charge and debenture
 Nomination side letter
 Intellectual property rights assignment
3) A first ranking floating charge over all of UPFC's assets and undertakings not the subject of fixed security
interest. Enterprise Inns plc Annual Report 2004 61
Notes to the Accounts
at 30 September 2004
24 Loans (continued)
(b) Amounts (including overdrafts) fall due as follows: Group Company
2004 2003 2004 2003
£m £m £m £m
In more than five years 2,781.6 836.4 1,197.0 846.6
In more than two years but not more than five years 492.9 377.2 394.5 385.9
In more than one year but not more than two years 234.7 62.5 61.1 65.4
In one year or less, or on demand 26.9 132.6 7.7 135.5
Total 3,536.1 1,408.7 1,660.3 1,433.4
(c) Details of undrawn committed borrowing facilities available at 30 September are as follows:
2004 2003
Group and Company £m £m
Expiring in more than five years 190.0 —
Expiring after two years but not more than five years 110.0 50.0
Expiring in more than one year but not more than two years 4.2 —
Expiring in less than one year 10.9 —
315.1 50.0
Derivatives — other financial instruments
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.
(d) Interest rate hedging arrangements:
The Group is party to seven swap agreements:
A swap of £550 million fixed at 5.75% until 1 December 2004 thereafter fixed at 6.66% until 1 June 2012.
A swap currently of £40 million fixed at 7.934% until 30 December 2012.
A swap currently of £98 million fixed at 7.873% until 30 December 2012.
A swap currently of £109 million fixed at 7.873% until 30 December 2012.
A swap currently of £150 million fixed at 5.885% until 30 September 2013.
A swap currently of £38 million fixed at 5.660% until 30 September 2010.
A swap currently of £154.9 million fixed at 4.837% until 31 December 2005. 62 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
25 Share capital 
Authorised: 2004 2003
No. £m No. £m
Ordinary Shares of 5p each 500,000,000 25.0 500,000,000* 25.0
Allotted, called up and fully paid: 2004 2003
No. £m No. £m
Ordinary Shares of 5p each 349,505,390 17.5 340,849,978* 17.0
On 10 March 2004, 8 million shares of 5 pence each were placed by Deutsche Bank AG London. The placing price
was £6.30 per share and raised £50.1m net of expenses. Under the Executive Share Option Scheme 655,412 shares
were issued at an average price of £1.56 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 2004 the following options were outstanding:
Number Subscription
of shares* Exercise Date price (£)*
Executive Share Option Scheme 6,856 Between 26/11/99 and 26/11/06 0.88
Executive Share Option Scheme 12,494 Between 18/12/00 and 18/12/07 0.96
Executive Share Option Scheme 47,934 Between 17/12/01 and 17/12/08 1.40 
Executive Share Option Scheme 127,736 Between 14/12/02 and 14/12/09 1.63
Executive Share Option Scheme 303,916 Between 18/12/03 and 18/12/10 1.70
Executive Share Option Scheme 1,297,912 Between 11/12/04 and 11/12/11 2.58
Executive Share Option Scheme 1,724,500 Between 16/12/05 and 16/12/12 2.81
Executive Share Option Scheme 1,015,000 Between 08/12/06 and 08/12/13 4.90
Savings Related Share Option Scheme 10,094 Between 01/02/05 and 01/08/05 0.77
Savings Related Share Option Scheme 18,732 Between 01/02/06 and 01/08/06 1.02
Savings Related Share Option Scheme 111,284 Between 01/02/05 and 01/08/07 1.41
Savings Related Share Option Scheme 192,688 Between 01/02/06 and 01/08/08 1.25
Savings Related Share Option Scheme 117,330 Between 01/02/07 and 01/08/09 2.10
Savings Related Share Option Scheme 325,080 Between 01/02/08 and 01/08/10 2.32
Savings Related Share Option Scheme 170,926 Between 01/02/09 and 01/08/11 3.73
The SAYE scheme is Inland Revenue approved and the Company has taken advantage of the exemption from
applying UITF38.
Directors’ contingent rights to shares are shown in the Directors’ Remuneration Report on pages 23 to 30.
* Restated for the sub-division of shares from 10 pence to 5 pence per share on 23 January 2004. Enterprise Inns plc Annual Report 2004 63
Notes to the Accounts
at 30 September 2004
26 Reserves
Group Other
Share Re- Capital reserve — Profit
premium valuation redemption Merger treasury and loss
account reserve reserve reserve shares* account
£m £m £m £m £m £m
At 1 October 2003 as previously stated 434.8 402.3 7.6 77.0 — 143.6
Prior year adjustment (note 1) ———— (4.4) 3.5
At 1 October 2003 restated 434.8 402.3 7.6 77.0 (4.4) 147.1
Transfer of realised revaluation deficit — 1.5 — — — (1.5)
Retained profit for the year ————— 106.3
Premium on issue of shares 50.7 —————
Surplus on revaluation of estate — 133.3 ————
Share of associate surplus on revaluation of estate — 4.7 ————
Purchase of shares to be held in trust ———— (24.3) — 
Share-based expense recognised in operating profit — ———— 1.6
Directors’ entitlements exercised in the year ———— 0.6 (0.6)
Actuarial loss recognised in the defined benefit
pension scheme of subsidiary ————— (0.6)
At 30 September 2004 485.5 541.8 7.6 77.0 (28.1) 252.3
The cumulative amount of goodwill written off to reserves at 30 September is as follows: 2004 2003
£m £m
Positive goodwill 9.8 9.8
Negative goodwill (7.4) (7.4)
2.4 2.4
Company Other
Share Capital reserve — Profit
premium Revaluation redemption treasury and loss
account reserve reserve shares* account
£m £m £m £m
At 1 October 2003 as previously stated 434.8 374.2 7.6 — 58.2
Prior year adjustment (note 1) — — — (4.4) 3.5
At 1 October 2003 restated 434.8 374.2 7.6 (4.4) 61.7
Transfer of realised revaluation deficit — 3.1 — — (3.1)
Retained profit for the year — — — — 148.7
Premium on issue of shares 50.7 ————
Surplus on revaluation of estate — 106.1 — — —
Purchase of shares to be held in trust — — — (24.3) — 
Share-based expense recognised in 
operating profit — — — — 1.6
Directors’ entitlements exercised in the year — — — 0.6 (0.6)
At 30 September 2004 485.5 483.4 7.6 (28.1) 208.3
* Other reserve — treasury shares comprises own shares held.  64 Enterprise Inns plc Annual Report 2004
Notes to the Accounts
at 30 September 2004
27 Reconciliation of shareholders’ funds
2004 2003
£m £m
Total recognised gains and losses 284.9 417.2
Dividends (41.2) (29.0)
243.7 388.2
New share capital subscribed 0.5 —
Premium on issue of shares 50.7 2.5
Consideration paid for purchase of own shares (24.3) —
Cost of shares issued through the Quest sharesave scheme — (1.9)
Share-based expense recognised in operating profit 1.6 —
Net addition to shareholders’ funds 272.2 388.8
Opening shareholders funds as previously reported 1,082.3 693.5
Prior year adjustment (note 1) (0.9) (0.9) 
Opening shareholders’ funds as restated 1,081.4 692.6
Closing shareholders’ funds 1,353.6 1,081.4
28 Notes to the statement of cash flows
At Other At
1 October non-cash 30 September
2003 Acquisition Cash flow movements 2004
Analysis of net debt £m £m £m £m £m
Cash at bank and in hand 3.9 — 142.8 — 146.7
Cash 3.9 — 142.8 — 146.7
Short-term loans (132.6) (25.8) 130.4 1.1 (26.9)
Long-term loans (1,276.1) (2,145.2) (83.4) (4.5) (3,509.2)
(1,404.8) (2,171.0) 189.8 (3.4) (3,389.4) Enterprise Inns plc Annual Report 2004 65
Notes to the Accounts
at 30 September 2004
29 Capital commitments
Amounts contracted for but not provided in the accounts amounted to £12.8 million (2003 — £3.5 million) for the
Group and £7.6 million (2003 — £3.5 million) for the Company. 
30 Other financial commitments
At 30 September 2004 the Group and Company had annual commitments under non-cancellable operating leases
as set out below:
Land and Buildings
Group Company
2004 2003 2004 2003
£m £m £m £m
Operating leases which expire:
within one year 0.1 0.1 — 0.1
within two to five years 0.6 0.4 0.5 0.4
in over five years 4.6 2.5 4.1 2.5
5.3 3.0 4.6 3.0 66 Enterprise Inns plc Annual Report 2004
Report of the Auditors
Independent auditors’ report to the members of Enterprise Inns plc
We have audited the Group’s financial statements for the year ended 30 September 2004 which comprise 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 30. These
financial statements have been prepared on the basis of the accounting policies set out therein. We have also
audited the information in the Directors’ Remuneration Report 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 Directors’ Remuneration Report 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 Directors’ Remuneration Report 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 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 Directors’ Remuneration Report, 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. Enterprise Inns plc Annual Report 2004 67
Report of the Auditors
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 Directors’ Remuneration Report 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 Directors’ Remuneration Report 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 Directors’ Remuneration Report 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 as at
30 September 2004 and of the profit of the Group for the year then ended; and
 the financial statements and the part of the Directors’ Remuneration Report to be audited have been properly
prepared in accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
Birmingham
7 December 2004 68 Enterprise Inns plc Annual Report 2004
Five Year Record
Group Profit and Loss Accounts
Year ended 30 September
2004 2003 2002 2001 2000
£m £m £m £m £m
Turnover 712.7 480.6 368.9 245.4 172.1
Operating Profit 368.9 254.2 178.7 84.8 70.2
Profit on ordinary activities before tax 213.2 173.1 92.3 40.7 44.1
Profit after tax 147.5 124.5 64.1 26.3 30.2
Profit retained for the period 106.3 95.5 43.6 15.2 21.3
Adjusted earnings per share (pence)* 47.5 36.1 29.5 19.8 15.8
* Excludes exceptional items, goodwill amortisation and a one-off tax credit which occurred in 2003. Comparative
periods have been restated to take account of the sub-division of ordinary share from 10 pence to 5 pence per share 
on 23 January 2004.
Group Balance Sheets 
Fixed assets† 5,011.6 2,692.4 2,386.8 1,323.3 716.8
Current assets 237.0 47.7 59.9 62.4 41.2
Creditors due within one year (309.4) (306.4) (223.6) (137.2) (83.4)
Total assets less current liabilities 4,939.2 2,433.7 2,223.1 1,248.5 674.6
Creditors due after more than one year (3,585.6) (1,352.3) (1,531.0) (926.0) (445.7)
Net assets 1,353.6 1,081.4 692.1 322.5 228.9
† Prior year fixed assets have been restated for the change in accounting policy as described in note 1. Enterprise Inns plc Annual Report 2004 69
Analysis of Ordinary Shareholders
Number of Shares
Range shareholders % held %
1–1000 650 28.5 295,304 0.1
1001–10,000 923 40.4 3,212,784 0.9
10,001–50,000 302 13.2 7,134,024 2.0
50,001–100,000 92 4.0 6,772,426 1.9
100,001–150,000 64 2.8 8,125,683 2.3
150,001–500,000 136 6.0 38,164,731 10.9
500,001–1,000,000 53 2.3 38,291,663 11.0
1,000,001–5,000,000 49 2.1 102,925,088 29.5
5,000,001 and over 17 0.7 144,583,687 41.4
2,286 100.0 349,505,390 100.0
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 70 Enterprise Inns plc Annual Report 2004
Notice of Meeting
The 2005 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
20 January 2005 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 2004 and
the auditors’ report on the accounts.
2. To declare a final dividend.
3. To reappoint Mr G E Tuppen as a director.
4. To reappoint Mr D C George as a director.
5. To reappoint Mr A J Stewart as a director.
6. To reappoint Mrs S E Murray as a director.
7. To reappoint Ernst & Young LLP as auditors and to
authorise the directors to fix the remuneration of the
auditors.
8. To approve the directors’ remuneration report for the
year ended 30 September 2004.
9. THAT, in accordance with article 92 of the
Company’s articles of association, the maximum
aggregate amount of fees payable, excluding any
amounts payable under any other provision of its
articles of association, to all directors (other than
any director who for the time being holds an
executive office or employment with the Company
or a subsidiary of the Company) be and is increased
from £200,000 to £500,000 per annum. 
10. THAT the directors be and are 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 to allot relevant securities (as
defined in that section) up to an aggregate nominal
value of £5,825,084. 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 2006, except that the Company may at
any time before the expiry of this authority 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.
11. THAT the Enterprise Inns 2005 Annual Bonus Plan
(the “Bonus Plan”) referred to in the Chairman of the
Remuneration Committee’s letter to shareholders
dated 30 November 2004, a copy of the rules of
which are produced to this meeting and, for the
purposes of identification, initialled by the Chairman,
be and is approved and the directors be and are
authorised to make such modifications to the Bonus
Plan as they may consider appropriate to take
account of best practice and to adopt the Bonus
Plan as so modified and to do all such acts and
things as they may consider appropriate to
implement the Bonus Plan. 
12. THAT the Enterprise Inns 2005 Long-Term Incentive
Plan (the “LTIP”) referred to in the Chairman of the
Remuneration Committee’s letter to shareholders
dated 30 November 2004, a copy of the rules of
which are produced to this meeting and, for the
purposes of identification, initialled by the Chairman,
be and is approved and the directors be and are
authorised to make such modifications to the LTIP as
they may consider appropriate to take account of the
requirements of the UK Listing Authority and best
practice and to adopt the LTIP as so modified and to
do all such acts and things as they may consider
appropriate to implement the LTIP. 
13. THAT the Enterprise Inns 2005 Employee Share
Option Scheme (“ESOS”) referred to in the Chairman
of the Remuneration Committee’s letter to
shareholders dated 30 November 2004, a copy of
the rules of which are produced to this meeting and,
for the purposes of identification, initialled by the
Chairman, be and is approved and the directors be
and are authorised to do all such acts and things as
they may consider necessary or desirable to
implement the ESOS. 
14. THAT the Enterprise Inns 2005 Save as You Earn
Scheme (“SAYE”) referred to in the Chairman of the
Remuneration Committee’s letter to shareholders Enterprise Inns plc Annual Report 2004 71
Enterprise Inns Annual Report 2003 71
Notice of Meeting 
dated 30 November 2004, a copy of the rules of
which are produced to this meeting and, for the
purposes of identification, initialled by the Chairman,
be and is approved and the directors be and are
authorised to do all such acts and things as they
may consider necessary or desirable to implement
the SAYE.
15. THAT the Enterprise Inns 2005 Share Incentive Plan
(“SIP”) referred to in the Chairman of the
Remuneration Committee’s letter to shareholders
dated 30 November 2004, a copy of the rules of
which are produced to this meeting and, for the
purposes of identification, initialled by the Chairman,
be and is approved and the directors be and are
authorised to do all such acts and things as they
may consider necessary or desirable to implement
the SIP.
SPECIAL RESOLUTIONS
To consider and, if thought fit, to pass the following
resolutions which will be proposed as special
resolutions:
16. THAT, subject to the passing of resolution 10, the
directors be and are empowered pursuant to section
95 of the Companies Act 1985 to allot equity
securities (as defined in section 94(2) of that Act) for
cash pursuant to the general authority conferred on
them by resolution 10 and/or to sell equity
securities held as treasury shares for cash pursuant
to section 162D of that Act, in each case as if
section 89(1) of that 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 (other
than the Company) on the 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 sub-paragraph (a) above, of equity
securities for cash having, in the case of relevant
shares (as defined in section 94(5) of that 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 £873,763.
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 10
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.
17. THAT the Company be and is generally and
unconditionally authorised to make market
purchases (as defined in section 163(3) of the
Companies Act 1985) of its ordinary shares of 5
pence each provided that: 
a) the maximum number of ordinary shares of 5
pence each which may be acquired is
52,390,857; 
b) the minimum price per share which may be paid
for any such share (excluding expenses) is 5
pence; and
c) the maximum price per share which may be paid
for any such ordinary share of 5 pence (excluding
expenses) is an amount equal to 105 per cent of
the average of the middle-market quotations for
an ordinary share according to the Daily Official
List of London Stock Exchange plc for the five
business days immediately preceding the day on
which the contract to purchase is made.  72 Enterprise Inns plc Annual Report 2004
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; or (b) a CREST
Proxy Instruction (as set out in paragraph 4 below);
or (c) an online proxy appointment at
www.computershare.com/uk/etp/epa/fop (you will
need your unique PIN and Shareholder Reference
Number printed on the Form of Proxy), in each case
so that it is received no later than 11.00 a.m. on
18 January 2005.
4. CREST members who wish to appoint a proxy or
proxies through the CREST electronic proxy
appointment service may do so for the Annual
General Meeting and any adjournment(s) of the
meeting by using the procedures described in the
CREST Manual. CREST Personal Members or other
CREST sponsored members and those CREST
members who have appointed a voting service
provider(s) should refer to their CREST sponsor or
voting service provider(s), who will be able to take
the appropriate action on their behalf.
In order for a proxy appointment or instruction made
using the CREST service to be valid, the appropriate
CREST message (a “CREST Proxy Instruction”) must
be properly authenticated in accordance with
CRESTCo Limited’s specifications and must contain
the information required for such instructions, as
described in the CREST Manual. The message,
regardless of whether it constitutes the appointment
of a proxy or an amendment to the instruction given
to a previously appointed proxy must, in order to be
valid, be transmitted so as to be received by the
Company’s agent (ID 3RA50) by the latest time(s) for
receipt of proxy appointments set out in paragraph 3
above. For this purpose, the time of receipt will be
taken to be the time (as determined by the
timestamp applied to the message by the CREST
Applications Host) from which the Company’s agent
is able to retrieve the message by enquiry to CREST
in the manner prescribed by CREST. After this time
any change of instructions to proxies appointed
through CREST should be communicated to the
appointee through other means.
CREST members and, where applicable, their CREST
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 2006, except that the Company may, at
any time before the expiry of this authority, 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. 
The directors believe that the proposals in
resolutions 1 to 17 are in the best interests of
shareholders as a whole and they unanimously
recommend that you vote in favour of all the
resolutions. The directors intend to do so in respect
of their own beneficial interests.
On behalf of the Board Registered office:
3 Monkspath Hall Road
D C George Solihull
Company Secretary West Midlands, B90 4SJ
30 November 2004 Registered in
England and Wales
No. 2562808
Notes
1. A shareholder of the Company who is 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 does not need to be a
shareholder of the Company.
2. A form of proxy for use in connection with the
Annual General Meeting is enclosed with the
document of which this notice forms part. If you do
not have a form of proxy and believe that you
should, please contact the Company’s registrars,
Computershare Investor Services PLC, on 0870 702
0003 or at Computershare Investor Services PLC,
P.O. Box 82, The Pavilions, Bridgwater Road, Bristol,
BS99 7NH. 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) a form of proxy, sign it and return it,
together with the power of attorney or other
Notice of Meeting  Enterprise Inns plc Annual Report 2004 73
Notice of Meeting 
sponsors or voting service providers should note that
CRESTCo Limited does not make available special
procedures in CREST for any particular messages.
Normal system timings and limitations will therefore
apply in relation to the input of CREST Proxy
Instructions. It is the responsibility of the CREST
member concerned to take (or, if the CREST member
is a CREST personal member or sponsored member
or has appointed a voting service provider(s), to
procure that his CREST sponsor or voting service
provider(s) take(s)) such action as is necessary to
ensure that a message is transmitted by means of
the CREST system by any particular time. In this
connection, CREST members and, where applicable,
their CREST sponsors or voting service providers are
referred, in particular, to those sections of the CREST
Manual concerning practical limitations of the
CREST system and timings.
The Company may treat as invalid a CREST Proxy
Instruction in the circumstances set out in
Regulation 35(5)(a) of the Uncertificated Securities
Regulations 2001.
5. 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 18 January
2005 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
18 January 2005 shall be disregarded in determining
the rights of any person to attend or vote at the
Annual General Meeting.
6. Copies of the directors’ service contracts, the
directors’ remuneration report, the biographical
information of the directors seeking reappointment,
the Bonus Plan, the LTIP, the ESOS, the SAYE, the SIP
and the register of directors’ interests are available
for inspection at the Company’s registered office
during normal business hours on any weekday
(excluding Saturdays, Sundays and public holidays)
until the end of the Annual General Meeting 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. The
Bonus Plan, the LTIP, the ESOS, the SAYE and the SIP
will also be available for inspection at the offices of
CMS Cameron McKenna, Mitre House,
160 Aldersgate Street, London EC1A 4DD during
normal business hours on any weekday (excluding
Saturdays, Sundays and public holidays) until the
end of the Annual General Meeting.  74 Enterprise Inns plc Annual Report 2004
Explanatory notes to the Notice of
Annual General Meeting
The notice of the Annual General Meeting of the
Company to be held on Thursday, 20 January 2005
is set out on pages 70 to 73. 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 15 are ordinary resolutions. These
resolutions will be passed if more than 50 per cent
of the votes cast for or against are in favour.
Resolution 1 — Laying of Accounts
The Companies Act 1985 (the “Act”) requires that, for
each financial year, the directors lay the Company’s
annual accounts, the directors’ report, the directors’
remuneration report and the auditors’ report on the
annual accounts and the auditable part of the directors’
remuneration report before a general meeting.
Resolution 2 — Declaration of a Final Dividend
An interim dividend of 3.6 pence (net) has already been
paid in respect of the 2003/2004 financial year. The
directors are recommending a final dividend of 8.4
pence (net) per ordinary share of 5 pence, payable on
24 January 2005 to holders on the register as at 6.00
p.m. on 31 December 2004. The final dividend will not
be paid without shareholder approval.
Resolutions 3, 4 and 5 — Reappointment of Mr G E
Tuppen, Mr D C George and Mr A J Stewart
The Company’s articles of association (the “Articles”)
require that any director who was not appointed or
reappointed at either of the last two annual general
meetings before this meeting must retire, although they
may offer themselves for reappointment. Accordingly, Mr
G E Tuppen, Mr D C George and Mr A J Stewart are
retiring and seeking reappointment. Biographical
information for Mr G E Tuppen, Mr D C George and Mr
A J Stewart is included in the annual report and accounts.
Resolution 6 — Reappointment of Mrs S E Murray
The Articles require that all directors appointed by the
Board since the previous annual general meeting must be
reappointed by the shareholders of the Company. Mrs S E
Murray was appointed by the Board on 3 November 2004
and is therefore retiring and seeking reappointment by
shareholders. Biographical information for Mrs S E Murray
is included in the annual report and accounts.
Resolution 7 — Auditors
The Act requires that auditors be appointed at each
general meeting at which accounts are laid, to hold
office until the next such meeting. The resolution also
seeks authority for the directors to determine the
amount of the auditors’ fees. The Audit Committee
keeps under review the independence and objectivity of
the external auditors. After considering relevant
information, the Audit Committee recommended to the
Board the reappointment of Ernst & Young LLP.
Resolution 8 — Remuneration Report
The Act requires the Company to seek shareholder
approval for the directors’ remuneration report at the
general meeting before which the Company’s annual
accounts are laid. The directors’ remuneration report is
included in the annual report and accounts. If
shareholders vote against the report the directors will
still be paid but the Remuneration Committee will
reconsider its policy.
Resolution 9 — Increase of fees payable to non-
executive directors
Article 92 of the Articles provides that the Company
may, by ordinary resolution, increase the maximum
aggregate amount of fees payable to its non-executive
directors to a level above £200,000. Passing this
resolution will increase the maximum aggregate amount
of fees that may be paid to non-executive directors to
£500,000 per year. The proposed increase reflects the
growth of the Company and the impact on non-
executive directors’ fees of the substantial increase in
their corporate governance and other responsibilities in
recent years. The increase will also provide headroom for
any additional non-executive appointments and further
increases in responsibility which may be required as a
result of the new Combined Code on Corporate
Governance. Details of the fees paid to non-executive
directors in the financial year ended 30 September 2004
are included in the annual report and accounts.
Resolution 10 — Authority to the directors to allot
shares
Under the Act the directors may only allot shares if
authorised to do so. If passed, this resolution will
authorise the directors to allot and issue new shares
and/or sell shares held as treasury shares (up to an
aggregate nominal value of £5,819,264 up to
116,385,280 new ordinary shares of 5 pence each),
which is equal to approximately one-third (33.3%) of the
current issued share capital of the Company. At the date
of this notice the issued share capital of the Company
was 349,505,390 ordinary shares of 5 pence each and
the Company held no treasury shares. The authority will
expire 15 months after the date of passing of the
resolution or, if earlier, at the conclusion of the Annual
General Meeting of the Company in 2006.  Enterprise Inns plc Annual Report 2004 75
Explanatory notes to the Notice of
Annual General Meeting 
Passing this resolution will continue the directors’
flexibility to act in the best interests of shareholders,
when opportunities arise, by issuing new shares or
selling treasury shares. The directors currently have no
intention of issuing new shares.
Resolutions 11 to 15 — Adoption of new share
plans of the Company
Information in relation to these resolutions and
summaries of the proposed new share plans can be
found in the Chairman of the Remuneration Committee’s
letter to shareholders dated 30 November 2004, a copy
of which is enclosed with the document of which this
notice and explanatory notes form part.
Resolutions 16 and 17 are special resolutions.
These resolutions will be passed if not less than 75
per cent of the votes cast for and against are in
favour.
Resolution 16 — Disapplication of statutory 
pre-emption rights
If the Company issues new shares for cash it must first
offer them to existing shareholders in proportion to their
current holdings, in compliance with their statutory pre-
emption rights. If passed, this resolution will authorise
the directors to modify these rights to deal with legal,
regulatory or practical problems that may arise on a
rights or other pre-emptive offer or issue. 
The resolution also seeks shareholder authority to issue
a limited number of shares for cash and/or sell treasury
shares without offering them to shareholders first. The
authority is for an aggregate nominal amount of up to 5
per cent of the aggregate nominal value of the current
issued share capital of the Company (up to 17,475,269
new ordinary shares of 5 pence each). The authority will
expire at the same time as the authority to allot shares
given pursuant to resolution 10. 
The directors consider this authority necessary in order
to give them flexibility to deal with opportunities as
they arise, subject to the restrictions contained in this
resolution. 
Resolution 17 — Purchase of own shares by the
Company
If passed this resolution will grant the Company
authority for a period of up to 15 months after the date
of passing of the resolution to buy its own shares in the
market. The resolution limits the number of shares that
may be purchased to 14.99 per cent of the Company’s
issued share capital. The minimum price payable per
share (excluding expenses) is 5 pence and the maximum
price payable per share (excluding expenses) is an
amount equal to 105% of the average of the middle-
market quotations for an ordinary share according to the
Daily Official List of London Stock Exchange plc for the
five business days immediately preceding the day on
which the contract for purchase is made. This authority
will only be exercised if market conditions make it
advantageous to do so. 
The directors’ present intention is that 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) will
be held 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. For
most purposes while 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). The
directors will only make purchases under this authority
after considering the effect on earnings per share and
the benefits for shareholders generally.
At the date of this notice options were outstanding over
5,482,482 ordinary shares of 5 pence each in the
Company representing approximately 1.57% of the
current issued share capital of the Company. If the
proposed market purchase authority were used in full,
shares over which options were outstanding would
represent approximately 1.85% of the Company’s
adjusted share capital.  76 Enterprise Inns plc Annual Report 2004 Financial Highlights 1
Directors and Advisers 2
Chairman’s Statement 4
Chief Executive’s Review 5
Finance Director’s Report 10
Directors’ Report 13
Corporate Governance 17
Report on Directors’ Remuneration 23
Group Profit and Loss Account 31
Group Statement of Total Recognised Gains And Losses 32
Note of Historical Cost Profits and Losses 32
Group Balance Sheet 33
Balance Sheet 34
Group Statement of Cash Flows 35
Notes to the Accounts 36
Report of the Auditors 66
Five Year Record 68
Analysis of Shareholders 69
Financial Calendar 69
Notice of Meeting 70
Explanatory Notes to the Notice of AGM 74
Contents
The Enterprise Inns Team
The Vine Bar & Kitchen, Cambridge
The Vine has been a well-known live music venue in Cambridge for many
years, but had progressively declined in popularity until it was no longer a
viable operation. New lessee Falcon Pubs Ltd elected to completely
transform the customer proposition of the Vine to take advantage of its
proximity to shops, leisure venues, offices and local residents. A substantial
joint investment with the Company has produced immediate results and
the pub is now taking in excess of £10,000 per week.
Spread Eagle, Tunbridge Wells.
Former Whitbread managers Keith and Lindsay Ackerman took on the lease
of The Spread Eagle when it was acquired by the Company. After steadily
repositioning the pub by growing its food offering, the size and layout of
the site restricted further growth. A joint investment has now added a
garden room / restaurant and a kitchen extension to further develop the
catering opportunity which has flourished since completion.
The Bell Inn, Tanworth in Arden
The closure of the local village Post Office provided the catalyst for
lessee Ashley Bent and the Company to install a Post Office counter
together with a high quality delicatessen in a little–used public bar area
of this pub. Following  the refurbishment of all trading areas, this stylish
and highly successful pub can now add "Shopping" to its theme of
"Eating, Drinking & Sleeping". This project was supported by the Pub is
the Hub campaign, of which the Prince of Wales is the patron.
Rising Sun, Clanfield
35 years ago, in this small Hampshire village of thatched cottages and brick and
flint houses, the Rising Sun was built in 1 day as a prefabricated structure
designed to last no more than a few years. In a project lasting almost a year, the
existing building was demolished and a brand new brick and flint building has
been created out of reclaimed materials. Lessees the Wheeler family have jointly
invested with the Company to create a vibrant village pub which is totally in
keeping with its local community and surroundings.    
Four Alls
Ship Inn
Spread Eagle
Rising Sun
The Red & Mellow Yellow
The Bell Inn 
The Thornberries, Alkrington.
The trade in this former managed house had
declined to such an extent that a total
repositioning was required to create a
sustainable business. Using another successful
project as a benchmark, licensees Norman
Lowry and Danny Hughes have transformed
the outlet to include a highly successful
coffee shop as well as the traditional pub
fayre. Plans are already underway to further
develop the site by adding a restaurant.
Four Alls, Welford on Avon.
An investment of over £300,000 has established the Four Alls
as a stylish, contemporary, food-led destination and enabled it
to exploit its riverside location to the full. Weekly takings have
more than tripled as a result.
Ship Inn, Hoylake.
The Bell, Frampton.
The Red & Mellow Yellow, Mansfield.
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.
Working in partnership with the Company, increasing numbers
of licensees are recognising the business opportunity which
can be developed by offering a wider range of services in pubs.
The Bell
The Thornberries
The Vine Job No.7971 06.12.04   Proof 1
Enterprise Inns plc Annual Report and Accounts 2004
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 2004