Enterprise Inns plc Annual Report and Accounts 2005
Enterprise Inns plc
Annual Report And Accounts 2005
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 The White Hart
During the year there were many
examples of Enterprise licensees who
were recognised for the exceptional
skills they demonstrate and the quality
of the businesses they operate. Here is
just a sample of them:
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 Responsibility 17
Corporate Governance 21
Directors’ Remuneration Report 27
Group Profit and Loss Account 36
Group Statement of Total Recognised Gains And Losses 37
Note of Historical Cost Profits and Losses 37
Group Balance Sheet 38
Balance Sheet 39
Group Statement of Cash Flows 40
Notes to the Accounts 41
Report of the Auditors 69
Five Year Record 71
Analysis of Shareholders 72
Financial Calendar 72
Shareholder Information 73
Notice of Meeting 74
Explanatory notes to the Notice of AGM 78
Contents
The Enterprise Inns Team
WHITE HART, WINCHCOMBE
Morning Advertiser Best Pub – WINNER
The 16th century White Hart, run by Nicole and David Burr, was named
as the Morning Advertiser’s Pub of the Year for 2005 due to the high
quality offering and sheer originality demonstrated at the
Gloucestershire pub. Also winners of the Innovation of the Year Award,
the Burrs specialise in traditional Scandinavian food and sell a range of
Swedish goods, including antique furniture and textiles.
FARMERS ARMS, HESKIN, CHORLEY 
Morning Advertiser Best Village Pub – WINNER
Three generations of Malcolm Rothwell’s family have
been involved at the Farmers Arms over a period of
17 years, offering fine food, a wide selection of beers
and eight letting bedrooms. Their track record was
recognised when they won the overall Village Pub
category in the Morning Advertiser’s Best Pub
Awards 2005.  
Alford Arms
Farmers Arms
VINE TREE, MONMOUTH 
Morning Advertiser Social Responsibility Award – WINNER
Berni Miles, licensee at the Vine Tree and Monmouthshire Pubwatch
chairman, collected the Morning Advertiser’s PubWatch Award for Social
Responsibility at the 2005 Best Pub Awards, as well as winning Most
Responsible Tenant or Licensee at the recent Responsible Drink Retailing
Industry Awards. Both awards were made in recognition of his group’s
tough stance and zero-tolerance approach to responsible drinks retailing.
Vine Tree
WINFORD ARMS, BRISTOL
Bristol Pub of the Year – WINNER
Licensee Steve Gunter’s pub was selected from venues in and around
Bristol as the locals’ favourite. The pub, winner of the Bristol Evening
Post Pub of the Year Award for 2005, was chosen as it demonstrates
all of the elements that are great about a pub; "traditional hearty
food, top drinks, comfort, friendliness and value for money". 
Winford Arms
STATION INN, DERBY
Morning Advertiser Responsible
Retailing Awards – FINALIST
David Lalor, short-listed for the
2005 Morning Advertiser
Responsible Drinking Retailing
Award for his work and initiatives
within Derby’s pub industry, has
been lessee at the Station Inn for
the last 20 years. His nomination
by the Derby Crime Reduction
Partnership, Pubwatch and CAMRA
recognised his responsible and
proactive approach to licensed
trade, both within his pub and
throughout the local community.
Station Inn
ALFORD ARMS, HEMEL HEMPSTEAD 
Publican Catering Pub of the Year – WINNER
Becky and David Salisbury, licensees at the Alford Arms for the last six years,
have developed a consistently high quality food offer, whilst maintaining the
values of a traditional pub. They received The Publican Catering Pub of the
Year Award 2005, as well as being named Hertfordshire Dining Pub of the Year
for the last three years in the Good Pub Guide.
Left to right: David George, Finance Director;  
Gordon Harrison, Operations Director; 
Ted Tuppen, Chief Executive; 
Simon Townsend, Customer Services Director; 
Andrew Clifford, Strategic Planning and Investment Manager. 
College Arms
COLLEGE ARMS,
LOWER QUINTON
National Chef of
the Year – WINNER
Steve Love, joint licensee and
Chef Patron of the College
Arms, reopened the 500-year
old Lower Quinton pub recently
with wife and partner Claire,
following a substantial
refurbishment. Steve, a former
Roux scholar, was named as the
Craft Guild of Chefs National
Chef of the Year 2004 – 2006. 
FULHAM MITRE, LONDON
Morning Advertiser Best 
Tenanted or Leased Pub – WINNER
Louis Amato’s pub was named as the best Tenanted or Leased
Pub in the UK in the Morning Advertiser’s Best Pub Awards
2005. The judges praised Louis for ‘having the foresight to
realise the potential of The Fulham Mitre and for turning his
ideas into reality . . . a gem of a pub’.
Fulham Mitre
Front cover pictures (left to right)
King’s Head, Redditch
Navigation, Lapworth
Livesey Arms, Ludborough
Back cover pictures (left to right)
Mumbai Bluu, Leamington Spa
Horse and Jockey, Goole
Fleur de Lys, St. Albans
Printed by Jones & Palmer Limited, Birmingham. tel: (0121) 236 9007 Financial Highlights
Enterprise Inns plc Annual Report 2005 1
 Average operating profit per pub increased by 8% in the year over the pro-forma average for the 
prior year.
 The quality of the pub estate has been improved through the acquisition of 21 individual pubs and the
disposal of 158 pubs. In addition, the Group has invested over £50 million of capital and revenue
expenditure into the pub estate. 
 At 30 September 2005 the estate comprised 8,590 pubs valued at £5.2 billion.
 Cash generated after interest, tax, dividends and capital expenditure amounted to £137 million.
 At 30 September 2005 pro-forma net debt was £3,121 million, a reduction of £157 million in the year. 
2005 2004 Increase
Operating profit before exceptional items £520.2m £402.7m 29%
Profit before tax and exceptional items £305.6m £231.2m 32%
Adjusted earnings per share* 63.2p 47.5p 33%
Dividends 18.0p 12.0p 50%
* excludes exceptional items and goodwill amortisation.  Directors and Advisers
2 Enterprise Inns plc Annual Report 2005
H V REID #
Chairman
Appointed to the Board 21/01/97
Hubert Reid, 64, is Chairman of the Royal London Mutual
Insurance Society Limited and Midas Income and Growth
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, 53, 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 Pub Association. 
A J STEWART*#
Senior Independent Non-Executive Director
Appointed to the Board 29/05/01
Jo Stewart, 56, 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*#
Independent Non-Executive Director
Appointed to the Board 06/11/03
David Harding, 58, is Chairman of PD Ports plc and Coventry
Building Society. He was previously Finance Director of
Railtrack Group plc and Group Chief Executive of the parent
company RTG plc until 2002. He was also Group Finance
Director of Rugby Group plc and T&N plc. He is a fellow of
the Institute of Chartered Management Accountants and 
a local magistrate. 
S E MURRAY *# 
Independent Non-Executive Director
Appointed to the Board 03/11/04
Susan Murray, 48 is a non-executive director of Imperial
Tobacco plc, SSL International plc and Wm Morrison
Supermarkets PLC and also a director and council member
of the Advertising Standards Authority. She was previously
Chief Executive of Littlewoods Stores Limited. She has also
been Director of International Marketing for Diageo Plc,
President and Chief Executive Officer of The Pierre Smirnoff
Company and was a member of the Independent
Complaints Panel of the Portman Group from 1998–2004.  Directors and Advisers
Enterprise Inns plc Annual Report 2005 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
Deutsche Bank AG London, Winchester House, 
1 Great Winchester Street, London, EC2N 2DB
UBS Limited, 1 Finsbury Avenue,
London, EC2M 2PP
Registrar
Computershare Investor Services PLC, PO Box 859,
The Pavilions, Bridgwater Road, Bristol, BS99 1XZ
Solicitors
CMS Cameron McKenna LLP, 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, 54, 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, 48, joined the Company on its formation
and was appointed to the Board in October 1994. He has 
26 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, 43, 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
and 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 2005
Chairman’s Statement
I am delighted to report on our results for the year to 30 September 2005, which proved to be another year of
strong growth in our financial performance stemming from continuing improvements in the profitability of our
high quality pub estate and a full-year contribution from the Unique estate, acquired in March 2004. 
Total operating profit before exceptional items increased by 29% over the prior year to £520.2 million and profit
before tax and exceptional items rose by 32% to £305.6 million. Adjusted earnings per share increased by 33%
to 63.2 pence.
The directors are recommending a final dividend of 12.4 pence per share, making a total for the year of 18.0
pence, an increase of 50% over the prior year with an adjusted EPS cover of 3.5 times. The final dividend will
be payable on 23 January 2006, to members on the register on 30 December 2005.
The Board has reviewed the Company’s dividend policy for 2005/6 and future years and believes that, taking
account of the level of Group borrowings, it is appropriate to maintain future dividend cover of between 2.5 and
3.0 times earnings. Consequently it envisages increasing dividend payments in 2005/6 to move within these
parameters and thereafter intends to increase dividends broadly in line with the growth in earnings per share. 
Free cash inflow after interest, tax, dividend payments and capital expenditure amounted to £137 million in
the year. Along with proceeds from pub disposals this facilitated a reduction in gross borrowings, net of cash, of
£157 million in the year. At the year-end pro-forma net debt was £3.1 billion, with interest costs 100% fixed at
an average rate of 6.9% for an average life of 14 years. 
The Group’s strategy remains focused on building shareholder value through investment in the development of
its licensed estate and the optimum use of the strong and predictable cash flows which are generated from the
predominantly freehold pub estate. The Board’s policy is to maintain efficient leverage of the balance sheet in
the context of the level of profit generated and the valuation of the pub estate. It is intended to commence a
rolling share buy-back programme to return surplus cash to shareholders and to ensure that the balance sheet
remains efficient. There is authority to purchase up to 14.99% of the issued share capital and the Board
anticipates purchasing shares to the value of at least £200 million during the current financial year.
As required by EC regulations and in common with all other listed companies, Enterprise will adopt
International Financial Reporting Standards (IFRS) as the basis of preparing its Group accounts from the
financial year beginning in 2005. As such, this will be the last set of results that are reported using UK
accounting standards. In April 2006 we plan to publish the opening transitional IFRS balance sheet as at 
1 October 2004 and the 2005 interim and full year results re-stated under IFRS. This will include a
reconciliation from the published UK GAAP results and a full explanation of all the changes that have been
made. The first set of results to be reported using IFRS will be the interim results published in May 2006. 
There will be no impact on cash flows in the business or on our debt covenants. 
The Board is confident that the Enterprise estate continues to provide 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 2005 5
Chief Executive’s Review
Results
2005 has been another good year of consolidation and progress for Enterprise Inns. Operating profit before
exceptional items increased by 29% to £520.2 million, driven by growth in average operating profit per pub of
8% and the successful integration of the Unique business which was acquired in March 2004.
Adjusted earnings per share increased by 33% to 63.2p, rounding off a ten year run since Enterprise floated on
the London Stock Exchange in 1995 which has delivered compound annual growth in earnings per share of
more than 30%.
The Future is all about Quality
In a market where the pub goer is ever more discerning, where consumer discretionary spend is under pressure
and where cheap alcohol is readily available in supermarkets, it is quality and service that count as the
deciding factors in the long term success of any pub. 
2000 2001 2002 2003 2004 2005
70
60
50
40
30
20  
10
0
550
500
450
400
350
300
250
200
150
100  
50
0
75.6
104.7
204.0
293.2
402.7
520.2
Adjusted EPS (pence)
Operating profit before exceptional items (£m)
15.8
19.8
29.5
36.1
47.5
63.2 6 Enterprise Inns plc Annual Report 2005
At Enterprise, we are committed to improving the quality of our pubs, investing alongside our licensees to
develop their businesses, gain market share and unlock additional profits. During the year we invested £55
million of capital and revenue expenditure into the estate and, together with a similar level of expenditure by
our licensees, have improved over 1,100 pubs, either through major schemes or minor refurbishments.
We continued to improve the quality of the estate through churn, buying 21 top quality pubs for a total
consideration of £14 million and selling 158 underperforming sites for £47 million, recording a profit on
disposal of £3 million. At 30 September 2005 our estate of 8,590 pubs was valued at £5.2 billion, reflecting a
5% increase in underlying pub values.
Since the beginning of the new financial year, we have purchased a further 34 pubs for £36 million and sold 
14 for £7 million. We continue to review all acquisition opportunities as they arise, judging them against our
strict quality, risk and return criteria and their ability to deliver long term enhancement in shareholder value.
Over the past year we have continued to see improvements in the quality, value and earnings potential of our
pubs, with average operating profit per pub up by 8% to £60,100.
Chief Executive’s Review
2000 2001 2002* 2003* 2004* 2005
*2002, 2003 and 2004 restated to include amortisation of goodwill
70
60
50
40
30
20  
10
0
Average operating profit per pub (£’000)
30.4
37.0
46.0
49.3
563
494
700
600
500
400
300
200  
100
0
Average value per pub (£’000)
277
377
424
606
2000 2001 2002 2003 2004 2005
60.1
55.5 Enterprise Inns plc Annual Report 2005 7
Chief Executive’s Review 
Quality leads to Profitability
A top quality estate generating sustainable profits for the benefit of our licensees and shareholders is clearly 
a long-term aim of Enterprise and we continue to make steady progress along that route.
It is the link between the quality of our pubs, our operating profit and our licensees’ profitability which is the
key to our long-term success. Running a pub is one of the most demanding jobs around, requiring great
professional and people skills, boundless energy and enthusiasm and a willingness to work long hours. Against
a backdrop of increasing underlying costs and the endless ability of government to impose yet more regulation
and bureaucracy, the best licensees look for quality outlets that give them a chance to make a good return for
their effort and investment. It is not just the quality of the pub itself which is important to the licensee, but the
essential fairness of the overall package offered, especially the level of rent, the help and support given to
licensees and the range of products offered.
In this latter regard, our licensees enjoy an unrivalled choice across the vast majority of beer brands available
in the UK and we were delighted this year to extend our Society of Independent Brewer’s cask ale scheme
across the whole estate. Against a national decline in the availability and consumption of cask ales, we have
worked with local and regional brewers to grow cask ale sales year on year, to a level where they now
represent more than 13% of our beer volumes, against a national average estimated to be around 8%. These
brands may not deliver the highest level of unit margin to Enterprise but they offer our licensees the chance 
to develop their businesses and give their customers the range of products that they seek.
As a result of our continuing commitment to ensuring that rental levels are fair, we are pleased that, once
again, our estate leads the field in providing worthwhile returns for our hard-working licensees. We estimate
that the level of licensee profitability has increased by 5% during the year to an industry leading average 
of £42,000.
* average profit per pub for 2005 within each band
£0–£15k £15–£30k £30–£45k £45–£60k £60–£75k >£75k
(£11k)* (£24k)* (£37k)* (£51k)* (£66k)* (£96k)*
Licensee Profit
50%
45%
40%
35%
30%
25%
20%
15%
10%  
5%
0%
2
1
28
26
37
38
21
22
7
8
55
 2004   2005 8 Enterprise Inns plc Annual Report 2005
With input costs rising and consumer discretionary spend currently under some pressure, it is comforting to see
that licensees recognise that the higher quality and profitability of our estate, together with the overall fairness
of the package we offer, gives them the best possible chance to continue to be successful. As a result we are
never short of good quality, fully funded applicants to take over pubs which become available for lease or
tenancy. Once again, this is supported by improvements in certain key performance indicators:
 Our database has more than 900 fully funded applicants, four times the number of pubs available to let. 
 An active lease assignment market has seen more than 600 businesses change hands during the year at
an average lease premium of almost £70,000. 
 Rent concessions at 30 September 2005 amounted to just 0.4% of rent roll.
 Over 1,100 rent reviews were completed during the year, with only two going through any form of
arbitration, both of which were found in our favour.
 Bad debt costs for the year reduced once again, and remain under 0.2% of turnover.
We remain convinced that the leased and tenanted format offers an excellent low-cost opportunity for
entrepreneurial licensees to run their own businesses. The Trade and Industry Select Committee looked at
working practices within the tied-pub sector and concluded that, on the whole, they are fair and work well in
the interest of all parties. In particular, we are pleased that the industry standard Code of Practice, recently
issued by the British Beer and Pub Association, reflects practices and recommendations that have been the
norm at Enterprise for a long time.
Legislative background 
Licensing reform
The past year has seen the industry get to grips with the substantial costs and workload arising from
implementation of the Licensing Act 2003. The Enterprise team worked hard throughout the year to help
licensees to develop their business operating plans and submit their applications. In the end, some 7,500 of
our pubs applied to extend their existing opening hours and the majority have been approved without difficulty.
We do not anticipate a material increase in turnover and profitability arising from the additional hours, simply a
greater flexibility to allow responsible licensees better to serve the needs of their customers.
Flexible opening hours have, however, become part of the debate surrounding binge drinking and anti-social
behaviour. Whilst it is convenient for government to point the finger of blame at pubs, in a few cases with
justification, this is a debate which has far wider implications including education and personal responsibility,
sensible advertising and promotions, the pricing and control of the sale of alcohol in supermarkets and
effective policing and control of rogue outlets and individual drinkers. The vast majority of pubs are responsibly
run by well trained and professional licensees. It is essential that the government and the police recognise that
the problems are associated with a small minority of the population and continue to target those outlets and
individuals who encourage or engage in anti-social behaviour.
Smoking in public places
The government’s approach to the control of smoking in pubs is causing uncertainty and concern across the
industry. Whilst most would agree that smoking is unacceptable where food is being consumed, the key issue
in this debate should be maintaining choice for consumers, whilst giving due consideration to health and safety
and the protection of staff. 
Chief Executive’s Review  Enterprise Inns plc Annual Report 2005 9
Chief Executive’s Review 
The reforms as currently proposed will force many pubs to choose between selling food in a smoke free
environment or abandoning food and simply supplying drink to customers who would then be allowed to
smoke. Furthermore, some 20,000 clubs, many of which operate in direct competition to pubs, are to be
exempt from the legislation under proposals that appear to take little account of the health and welfare of bar
staff and club stewards.
The legislation as currently proposed will undoubtedly change and potentially damage the traditional British
pub, often in rural or community surroundings, which survives by providing an all round service to its
customers, a social meeting place to have a drink with friends and at the same time an excellent location for a
good meal out, complementary activities vital both to the community and to the financial viability of the pub.
The industry had been working towards the same rules applying to all, with the objective being the cessation of
smoking at the bar and the steady reduction in the space available for smokers in pubs, culminating in
separately defined smoking rooms or outside spaces designated for customers who wish to smoke. We hope
that through the consultation process we will return to a solution which is sensible for employees and
consumers and which will not put many small community and rural pubs under pressure, with the resulting
loss of jobs, tax revenues and amenity.
Conclusion
This has been another great year for Enterprise. Working alongside our licensees, we have seen growth in
market share and profitability in a market which remains highly competitive and where rising costs and
weakness in consumer confidence have presented special challenges. 
The Enterprise team has successfully managed the integration of the Unique estate while coping with the
additional workload imposed as a result of licensing reform. We have once again delivered substantial growth
in earnings and dividends and we are now in a position to return surplus cash to shareholders through a rolling
share buy back programme.
The new financial year has started well but we expect to see the opportunities arising from flexible opening
hours tempered by continuing pressure on consumer discretionary spend. However, great pubs will always do
well, whatever the economic backdrop and the team looks forward to another challenging year of continued
success and growth in shareholder value.
Ted Tuppen
Chief Executive 10 Enterprise Inns plc Annual Report 2005
Finance Director’s Report
Profit for the year
The results for the year included a full contribution from the acquisition of the Unique Pub Company Limited
(Unique), which was completed on 31 March 2004.
Total Group operating profit before exceptional items increased by 29% to £520.2 million and profit before tax
and exceptional items increased by 32% to £305.6 million. A summary of the Group Profit and Loss Account
compared to prior year is as follows:
Year to 30 September
2005 2004 Increase
£m £m %
Turnover 919.9 712.7 29
Total operating profit * 520.2 402.7 29
Net interest payable * (214.6) (171.5)
Profit before tax * 305.6 231.2 32
Exceptional items (1.7) (18.0)
Taxation (92.1) (65.7)
Profit after tax 211.8 147.5 43
Adjust earnings per share (pence) 63.2 47.5 33
Dividend per share (pence) 18.0 12.0 50
* Stated before exceptional items
Cash Inflow
Cash inflow from operating activities of £522.9 million represents an increase of 30% on prior year. Free cash
inflow increased by 11% to £137.5 million:
Year to 30 September
2005 2004 Increase
£m £m %
Operating cash inflow 522.9 403.2 30
Net interest payable (235.1) (158.3)
Tax (52.8) (36.3)
235.0 208.6 13
Dividends (47.9) (31.8)
Capital expenditure on the pub estate (48.8) (50.9)
Other capital expenditure (0.8) (1.8)
Free cash inflow 137.5 124.1 11 Enterprise Inns plc Annual Report 2005 11
Finance Director’s Report 
In addition, net receipts from the purchase and sale of pubs amounted to £32.7 million:
Year to 30 September
2005 2004
£m £m
Disposal proceeds 47.0 110.5
Acquisition costs (14.3) (12.9)
Pub churn 32.7 97.6
Debt Facilities
During the year, the level of pro-forma net debt was reduced by £157 million to £3,121 million:
Year to 30 September
2005 2004
£m £m
Corporate bonds (1,185) (1,185)
Syndicated bank borrowings (260) (435)
Securitised bonds (1,772) (1,650)
Bridge facility — (155)
(3,217) (3,425)
Cash:
Securitised 98 108
Non-securitised (2) 39
Pro-forma net debt (3,121) (3,278)
The figures stated above are gross of issue costs, discounts and premiums and exclude interest rate swaps 
and fair value adjustments.
At the year-end there were £937 million of interest rate swap arrangements in place which end in 2012 
and 2013.
Balance Sheet
The net assets of the Group at year-end were £1,741 million which compares with £1,354 million as at 
30 September 2004.
The book value of the pub estate at year-end was £5,217 million, which included a revaluation surplus of
£268 million, following completion of the annual valuation exercise. Pubs within the estate are valued on an
existing use basis. 
Interest
Net interest payable in the year was £214.6 million, which was covered 2.4 times. All of the debt within the
Group is at either fixed interest rates or is fixed through interest rate swaps. 12 Enterprise Inns plc Annual Report 2005
Tax Charge
The tax charge of £92 million represents an effective tax rate of 30.3%, which is in line with the rate reported
at the half-year. The tax charge comprises corporation tax of £67 million and deferred tax of £25 million. The
current year corporation tax represents 22% of profit before tax.
The cash outflow in respect of tax during the year was £53 million and this represents 17% of profit before tax.
Dividend payment
The directors are recommending the payment of a final dividend of 12.4 pence per ordinary share. The dividend,
subject to approval at the Annual General Meeting, will be paid on 23 January 2006. This will result in a 
full year dividend of 18.0 pence per share, an increase of 50% on prior year. This represents dividend cover of
3.5 times based on adjusted earnings per share of 63.2 pence.
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. Therefore, the first financial statements to be
published under IFRS will be our interim results for the period ended 31 March 2006. The Group continues to
prepare for this and has carried out a detailed review of the impact of each standard on the financial
statements. 
In our annual accounts for the year ended 30 September 2004 we outlined three main areas where we
expected differences to arise. These were fixed assets, hedge accounting and deferred tax. Having carried out
more detailed analysis, we still expect these to be the key areas of difference. There will also be a relatively
small impact from recognising the fair value of share-based incentives over their vesting period and from
ceasing to amortise goodwill. The revised accounting does not impact on the cash flows of the business. 
We propose publishing full details of the transition to IFRS in April 2006, prior to the announcement of our
Interim Results for the six months ended 31 March 2006, which we expect to announce in May 2006. Details
to be published will include a full reconciliation of the balance sheet under UK standards as published at 
30 September 2004 to the opening balance sheet under IFRS and the restated results for the periods to 
31 March 2005 and 30 September 2005.
D C George
Finance Director
Finance Director’s Report  Enterprise Inns plc Annual Report 2005 13
Directors’ Report
The directors present their report and accounts for the year ended 30 September 2005.
Accounts and dividends
The Group profit for the year, after taxation, amounted to £211.8m (2004 — £147.5m) and is dealt with as
shown in the Group Profit and Loss Account.
The directors recommend the payment of a final dividend of 12.4 pence (2004 — 8.4 pence) per ordinary share
to be approved at the Annual General Meeting on 19 January 2006. The final dividend will be paid on 
23 January 2006 to members on the register on 30 December 2005. When added to the interim dividend of 5.6
pence (2004 — 3.6 pence), this produces a total dividend for the year of 18.0 pence (2004 — 12.0 pence) per
ordinary share.
Principal activities and review of the business
The principal activity of the Group continues 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.
Directors and their interests
The names of the current directors together with related biographical information are set out on pages 2 to 3.
All directors except:
 Mrs S E Murray, who was appointed to the Board on 3 November 2004, and
 Mr M F Garner, who retired from the Board on 20 January 2005
served throughout the year and on the date of signing of these financial statements.
In accordance with the Articles of Association of the Company, Mr H V Reid and Mr G W Harrison retire from
the Board at the Annual General Meeting by rotation and offer themselves for reappointment. The Board
believes that the performance of Messrs Reid and Harrison continues to be effective, that they demonstrate
commitment to their roles and have a range of skills and experience relevant to the direction and control of
the Company. In addition, Mr Reid considers that he has sufficient time to commit to the Company’s affairs
notwithstanding his other business commitments and has no conflicting interests. 
At no time during the year did any of the directors have an interest in any contract with the Group other than
as described in note 16.
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: 14 Enterprise Inns plc Annual Report 2005
Directors’ Report
30 September 30 September
Ordinary Shares of 5 pence each 2005 2004 
H V Reid Beneficial 122,500 122,500
G E Tuppen Beneficial 1,002,412 886,744
as Trustee 177,980 197,300
D C George Beneficial 964,854 911,182
as Trustee — 114,000
G W Harrison Beneficial 575,622 452,000
W S Townsend Beneficial 125,822 82,684
A J Stewart Beneficial 14,000 14,000
D A Harding Beneficial 500 —
S E Murray Beneficial 500 —
The executive directors, along with other employees, have been granted options over the shares of the
Company. Details of these interests are disclosed in the 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 22 November 2005 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 issues share capital
Prudential plc 21,497,656 6.2
FMR Corp/Fidelity International Limited 21,294,357 6.1
Barclays PLC 17,548,955 5.0
Lansdowne Partners Limited Partnership 14,475,009 4.1
Deutsche Bank AG 14,046,291 4.0
Legal and General Group plc 13,380,481 3.8
Share Capital
Details of the share capital of the Company are set out in note 25 to the accounts on page 66. The Company
did not issue any shares during the period under review.
Shares acquired by Employee Share Trusts
The Company has established an employee benefit trust, the trustee of which is Mourant & Co Trustees Limited.
As at 30 September 2005 the trustee held, 8,813,905 shares which are used to satisfy awards made under the
Enterprise Inns Incentive Plans and other share option schemes. The Company has also established a Quest
trust to hold shares to satisfy awards made under the Save as you Earn share option scheme, the trustee of
which is Enterprise Inns Quest Trustees Limited. As at 30 September 2005 the trustee held 434,540 shares. 
The executive directors as employees of the Company are potential beneficiaries of shares held by these trusts
(the ‘trusts’). 
The total number of shares held by the trusts at 30 September 2005 was 9,248,445, representing 2.6% of the
total called up share capital at that date. During the year, the trusts purchased 4,829,673 of the Company’s
shares. These shares were purchased for a consideration of £37.6m (net of expenses) and had a nominal value
of £0.2m. The maximum number of shares held during the year ended 30 September 2005 was 9,248,445 on
30 September 2005 for a period of 1 day, representing 2.6% of total called up share capital at that time.  Enterprise Inns plc Annual Report 2005 15
Directors’ Report 
During the year, 1,914,074 shares with a nominal value of £95,704 were disposed of by the trust by way of the
exercise of share options under the share schemes. A total of 450,278 shares were disposed of through the
short-term and long-term incentive schemes for consideration of £17. A total of 102,135 shares were disposed
of through the Quest Trust for consideration of £0.2m. 
Authority for the Company to purchase its own shares was in force at 30 September 2005.
Employment policies
The Group is dependent on the skills and commitment of its employees. Employees at all levels of the business
are encouraged to make the fullest possible contribution. To attract and retain these skills 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 because of,
amongst other matters, gender, marital status, race, age, sexual preference, religion, belief or disability. All
decisions are based on merit of the individual concerned. The Group is dedicated to undertaking its business
operations in a way which respects individual human rights and treats individuals with dignity. 
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.
The Group’s employment policies and procedures are described in detail in a Staff Handbook which is provided
to all employees upon joining the Group. The Staff Handbook is regularly reviewed and updated to take account
of relevant employment legislation and best practice, and new policies and procedures are developed if
required. These include specific policies on equal opportunities, flexible working, training and development,
acceptance of gifts and hospitality and whistleblowing. 
The Group has systems in place to comply with the Data Protection Act 1998 to ensure the privacy of personal
information. 
Employee involvement and reward
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. In providing this training
and support we expect high standards and commitment in return. All employees are provided with initial
induction training and are set challenging personal objectives and participate in discretionary bonus schemes.
During the year, the Group substantially reviewed and enhanced its comprehensive employee appraisal process
which ensures that personal objectives are monitored, key competencies are assessed and any performance
concerns addressed through appropriate training and focus. Every employee has the opportunity to discuss
work-related aspirations and participate in appropriate training and development programmes.
During the year continued emphasis has been placed on effective communication regarding matters which may
affect employees and the overall performance and development of the Group. The policy of providing
employees with information about the Group has continued. 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. The use of email and the intranet supplement effective communication to all
employees as well as face to face briefings. 16 Enterprise Inns plc Annual Report 2005
Directors’ Report
Employees are encouraged to invest in the Group through participation in two share ownership schemes
administered by Halifax plc:
 The Save as You Earn Scheme — 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; and
 The Share Incentive Plan — from November 2005 employees will be able to purchase shares out of pre-
tax income up to statutory limits which are held in a trust.
Charitable and Political Donations
At pub level, the Group supports local community initiatives and charitable causes through the appropriate use
of marketing investment. The Company does not make any corporate charitable donations. The Company has
not made any political donations during the year and intends to continue its policy of not doing so for the
foreseeable future.
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 24 days’ purchases outstanding in trade creditors (2004 — 31 days).
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; and
 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.
Annual General Meeting
The AGM will be held on 19 January 2006 at 11.00 a.m. The notice convening the AGM and an explanation of the
resolutions sought are set out on pages 74 to 80. At the meeting, resolutions will be proposed to authorise the
company to make market purchases of its own shares and to extend directors indemnities in accordance with best
practice. The directors consider the resolutions proposed are in the best interests of the Company and it is our
recommendation that you support these proposals as they intend to do so in respect of their own holdings.
Auditors
A resolution to re-appoint Ernst & Young LLP as the Group’s auditors will be put to the members at the
forthcoming Annual General Meeting. 
By order of the Board
D C George
Secretary
22 November 2005 Corporate Responsibility
Enterprise Inns plc Annual Report 2005 17
The Group’s approach to the management of corporate responsibility is to balance the long-term interests of
stakeholders by focusing on those matters which are relevant to long-term success and the environment in
which the business operates.
The Board is committed to act in a responsible manner. This report sets out the key areas we have focused on
during the period under review. Our approach to corporate responsibility includes:
 analysing and managing risk
 maintaining a continuing dialogue with stakeholders
 managing the environmental and social impact of the business on employees and the community.
Social, Ethical and Environmental Risk Management
The identification, management and monitoring of key risks is undertaken as part of the Group’s system of
internal control as described on page 26. In addition, we work with employees, licensees and suppliers as
appropriate to ensure we understand any issues which may impact on the workplace, the community or the
environment. The Chief Executive is responsible for the development and implementation of the approach to
social responsibility matters. All executive directors are responsible for the promotion of good practice in
environmental matters and report to the Board as necessary on significant risks. 
The most significant corporate responsibility issues for the Group are considered below and the Group has put
in place policies to ensure:
 compliance with relevant laws, regulations and codes of practice 
 employees are provided with a safe working environment
 ongoing training needs of employees are met.
The Workplace
The Directors’ Report sets out employment policies and explains the way we communicate with employees.
The key risk area in our working environment is the health, safety and well being of employees. Employees
work in a low risk environment. There has been no material health and safety issue, incident or fine for non-
compliance during the period under review. 
The Group’s Health & Safety Policy (the ‘H&S Policy’) clearly states its intention to provide and maintain a
healthy and safe working environment. 
In order to deliver this policy, the Group has established an internal Health & Safety Management Group (the
‘H&S Group’) with responsibility for advising, reviewing and delivering the agreed management systems
employed by the business to satisfy its health and safety responsibilities. The H&S Group reports to the
Company Secretary who is responsible for regular reporting to the Board. The H&S Group’s remit is carried out
in accordance with the Health and Safety at Work Act 1974 and all other relevant health & safety statutory
provisions and approved codes of practice. 
The H&S Group has adopted the principles contained in the Health and Safety Executive guidance (HSG65)
"Managing Health and Safety", which includes the following specific requirements:
 the establishment of a formal written policy Corporate Responsibility
18 Enterprise Inns plc Annual Report 2005
 the establishment of a communication system with staff
 the ongoing identification of risks and required responses
 the ongoing measurement of performance and the continual improvement of process and procedure to
address changing risks.
The H&S Group monitors accidents affecting staff, licensees and contractors, audits the understanding and
application of the H&S policy and procedure by staff and contractors and provides an annual report and risk
assessment to the Board.
The Environment
The Group recognises its responsibility to achieve good environmental practice and to continue to strive for
improvement in areas of environmental impact. Our approach is to work towards continuous improvement
through education, communication and direct action where applicable. 
The direct environmental impact in areas such as CO
2
emissions, waste and energy consumption is negligible.
The primary direct impact of the Group arises as a result of its head office working environment and as such
policies and procedures are largely focused on:
 compliance with environmental laws and regulations
 minimising waste and the use of recycling facilities wherever possible
 the efficient use and monitoring of energy consumption. 
At head office, efficient facilities management aims to reduce the costs of energy consumption. In addition,
materials are recycled where possible. Upon acquiring the building in 2002, the Group complied with the local
planning authority’s environmental policy relating to the construction, occupation and utilisation of office
facilities. This included the provision of a transport policy aimed at reducing the demand for car parking and
promoting employee behaviour consistent with local planning, environment and social policy. 
In respect of building projects undertaken across the pubs estate, the Group has established a series of
objectives that aim, over time, to:
i) ensure that the installation of all new mechanical plant carries the green flag efficiency mark to reduce
wasted energy use
ii) ensure that the majority of construction materials used are from sustainable/renewable sources 
iii) reduce the energy consumption of buildings through improved thermal insulation.
The Group has promoted a utilities management service to licensees and provides advice in the efficient usage
of energy. Through its membership of the British Beer and Pub Association, the Group has participated in the
Government’s consultation period seeking to clarify and implement glass recycling targets under the EU Waste
Directive.
The Community and Social Issues
The Group believes that the interests of responsible, entrepreneurial pub businesses are substantially aligned
with the interests of local communities and consumers. In this regard, the Group seeks to ensure that its pubs Corporate Responsibility
Enterprise Inns plc Annual Report 2005 19
provide a friendly, safe and controlled environment, and promote the positive contributions that pubs make to
their local communities.
The Group has prepared for the implementation of the Licensing Act 2003 and has worked with licensees over
the last year to ensure that appropriate opportunities for licensees and consumers are realised whilst meeting
the four principal licensing objectives:
i) the prevention of crime and disorder
ii) public safety
iii) the prevention of public nuisance
iv) the protection of children from harm.
Since the recent publication of the Government’s White Paper on Health, the Group has played a leading role
in the development, publication and implementation of industry proposals to reduce the incidence of smoking
in pubs so that:
 By the end of 2005, smoking is not permitted at the bar or back-of-house areas and a minimum of 50%
of restaurant/dining area floor space is to be designated  as non-smoking.
 There is a reduction of 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 Group is committed to continue to promote and implement these proposals with licensees and, through its
membership of the British Beer and Pub Association, the Group will continue to play an active part during the
continuing period of consultation with the Department of Health. 
The Group is also committed to high standards of customer service to its licensees and gives serious
consideration to complaints from the local community. Procedures are in place to ensure disputes are
monitored and dealt with quickly.
Finally, the Group has communicated details of the Disability Discrimination Act 2004 to all licensees 
and seeks to ensure that appropriate and reasonable actions have been implemented across the 
pub estate.
Responsible Drinking
The irresponsible consumption of alcohol can have detrimental effects on the social structures of local
communities. The Group recognises that pub licensees, retailers, the Government and the consumer all have
responsibilities as regards the promotion of a responsible drinking environment. We seek to be responsible by
the following means:
 The Company is an associate member of the Portman Group, the industry-funded body established to
encourage sensible drinking, help prevent misuse of alcohol, encourage responsible marketing and
foster a balanced understanding of alcohol-related issues. The Portman Group has launched the
responsible drinking website www.drinkaware.co.uk to promote and communicate the key messages
relating to alcohol consumption. Corporate Responsibility
20 Enterprise Inns plc Annual Report 2005
 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 and packaging regime. 
 The Group 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. 
 Through its membership of the British Beer and Pub Association, the Company has actively participated
in discussions with Government in the preparation of its National Alcohol Harm Reduction Strategy.
 The Group 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.
 A number of the Group’s suppliers have introduced sensible drinking messages on their products.
Future Corporate Responsibility Requirements
The Board is committed to continuous improvement in its corporate responsibility practices where relevant to
its operations and to build appropriate measures and procedures into its existing risk management and
governance systems.   Enterprise Inns plc Annual Report 2005 21
Corporate Governance
Introduction
The Board continues to recognise that good governance helps deliver strategy, minimise risk and safeguard the
interests of shareholders in the long term. For the year under review the appropriate governance provisions are
as set out in the Combined Code published by the UK Listing Authority in July 2003 (the “Combined Code”)
following reports by Sir Derek Higgs and Sir Robert Smith.
The Company is committed to high standards of corporate governance set out in the 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 governance structures the Company has put in
place to ensure it complies with the Combined Code and best practice. 
Statement by the directors on compliance with the Combined Code 
The Board is responsible for the policies and controls put in place to discharge the Company’s responsibilities
under the Combined Code. These include for example a sound system of internal controls and risk management
procedures designed to ensure the Company’s policies ensure compliance. 
Throughout the year ended 30 September 2005 the Company has been in full compliance with the provisions
set out in Section 1 of the 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. During the year the Board has continued to review its composition having regard to its own
circumstances, its size and complexity and the risks and challenges it faces. The Board has again concluded
that a strong executive presence 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 Company has also complied with the Smith guidance on Audit Committees in all material respects.
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 operations, results and for executing the Company’s strategy and development. Clear
divisions of accountability and responsibility between the Chairman and Chief Executive have been agreed by
the Board, are set out in writing and operate effectively for these positions. 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. The Board considers 
that all of its non-executive directors and the Chairman meet this requirement. Changes to the membership 
of the Board during the year reflected the ongoing needs of the business. Mrs S E Murray joined the Board on 
3 November 2004 and Mr M F Garner retired from the Board on 20 January 2005. The Board membership and
that of its Committees is designed to ensure that no one individual or group dominates proceedings and that
the wide variety of skills allows effective leadership across the Company’s business activities.
Biographical details of the Board members are set out on pages 2 and 3.  22 Enterprise Inns plc Annual Report 2005
Corporate Governance
Operation of the Board
The Company has an effective Board which leads and controls the Company and is responsible to the
shareholders for its proper management. It reviews trading performance, sets and monitors strategy and
examines major capital expenditure and acquisition opportunities. 
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. All meetings of the Board are structured to allow open
discussion by all directors and ensure full participation in the decision making process. 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 of the current directors attended all Board Meetings and the Strategic Review during the year. 
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 judgment 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.
In compliance with the Combined Code the Senior Independent Director met with the other non-executives
during the year to discuss matters in a forum that did not include executive directors or the Chairman. In
addition all the non-executives including 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, ensuring the good flow of information to the Board and its Committees and that all applicable
regulations are followed. The written responsibilities of the Company Secretary are available on the Company’s
website. 
All new directors receive an appropriately tailored induction programme arranged to develop their knowledge
and understanding of the Group and the key business issues. The training needs of each Director are regularly
reviewed and assessed by the Board. Existing directors undertake such professional development as is
necessary for them to carry out their duties as directors.  Corporate Governance
Enterprise Inns plc Annual Report 2005 23
Retirement of Directors
The Company’s Articles of Association provide that all directors are subject to re-election at least every three
years. In addition, all directors are subject to election by shareholders after their initial appointment. The Board
has determined that re-election of the Chairman and non-executive directors is not automatic and is subject to
formal review and recommendation by the Nominations Committee.
Board Committees
In order to ensure effective leadership and governance the Board governs through clearly identified
Committees which have delegated powers to deal with specific aspects of the Company’s affairs. A summary of
the operation of these Committees is set out below. The names and biographical details of all Board
Committee members is set out on pages 2 and 3.
The Audit Committee
The Audit Committee is chaired by Mr D A Harding who has current and relevant financial experience. The
Committee’s other members are Mr A J Stewart and Mrs S E Murray. During the year Mr M F Garner resigned
from the Committee on retiring from the Board. All members are independent. The Committee met three times
during the year. Two of these meetings were held immediately prior to the submission of the interim and year
end financial statements. All current Committee members attended each meeting during the year.
Representatives from the external auditors, the Chairman, Chief Executive and Finance Director were in
attendance at part or all 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 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. To ensure full compliance the Committee has an approved whistleblowing policy
under which employees may, in confidence, raise concerns about possible improprieties in such matters as
financial reporting. During the year and in accordance with the Combined Code, internal audit staff met with
the Committee to review internal audit procedures. 
The Committee reviews and monitors annually the independence and objectivity of external auditors and in
particular takes into consideration relevant guidance on the use of external auditors for non-audit services.
During the year the Committee has received updates on the progress of the IFRS conversion project from both
management and the external auditors. The Committee has been involved in all key decisions taken during the
transition to IFRS and these decisions have been based on comprehensive briefing papers produced by management. 
The Nominations Committee
The Committee is chaired by Mr H V Reid and its members are the Chief Executive and the three non-executive
directors Mr A J Stewart, Mr D A Harding and Mrs S E Murray, who joined the Committee in November 2004.
During the year Mr M F Garner resigned from the Committee on retiring from the Board. Corporate Governance
24 Enterprise Inns plc Annual Report 2005
The Committee is responsible for nominating, for approval by the Board, candidates for appointment to the
Board, having regard to its balance and structure. The Committee is also responsible for succession planning
and takes into account the knowledge and skills mix required by the Board in the future. The Committee meets
as required and met twice during the year when all the then current members attended. 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
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 Combined Code to ensure that no director is involved in discussions
regarding his or her own succession. These terms of reference are available on the Company’s website. 
The Remuneration Committee
The Committee is chaired by Mr A J Stewart and its members are the two other non-executive directors 
Mr D A Harding and Mrs S E Murray, who joined the Committee in November 2004. During the year Mr M F
Garner resigned from the Committee on retiring from the Board. 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 three times during
the year during which all current members were in attendance. 
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 Combined Code. These are available on the Company’s
website. 
The responsibilities of the Committee, together with an explanation of how it applies the principles set out 
in the Combined Code, are set out in the Directors’ Remuneration Report which includes details of directors’
remuneration and directors’ interests in options, together with information on service contracts, and is set out
on pages 27 to 35.
Finance Committee and Disclosure/Monitoring Committees
The Board has delegated, within agreed terms of reference, responsibility for certain matters of a routine nature
which are not reserved for full board consideration to a Finance Committee. This Committee comprises two
executive directors, one of which must be the Finance Director. In addition and to ensure full compliance with its
obligations under the new Disclosure Rules published by the UK Listing Authority, effective from 1 July 2005, the
company has established a Disclosure Committee comprising the Chairman, Chief Executive and Finance Director
to maintain adequate procedures, systems and controls to enable it to make timely and accurate disclosure of
information via a regulatory news service when it is impracticable to hold a full board meeting. A separate
Monitoring Committee has been established to monitor compliance with UK Listing Principles.
Performance evaluation
Principle A.6 of the 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. 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.  Corporate Governance
Enterprise Inns plc Annual Report 2005 25
Board performance evaluation 
The process was led by the Chairman and all directors 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 the
directors were present. The review found that the Board’s performance continues to be highly effective. 
Board Committee performance evaluation
For the Board Committee evaluation processes each Committee Chairman and Committee 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. The review found that the Committees were highly effective and concluded that the membership
and structure of the Committees complemented the workings of the Board.
Non-executive director performance evaluation
This process was led by the Chairman and all non-executive directors 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.
Executive director performance evaluation
This process was led by the Chief Executive and all executive directors completed a self-appraisal questionnaire
and were 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. Each executive
director is also set challenging performance objectives. The successful achievement of these objectives makes
up part of the short-term incentive criteria.
Shareholder relations
The Company recognises the importance of understanding the views of its stakeholders and has a continuing
dialogue with institutional investors to discuss the progress of the business and deal with a wide range of
enquiries. This includes 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 Combined Code. 
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 19
January 2006 can be found in the Notice of the meeting on pages 74 to 77. 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. The effectiveness of how shareholder views are
communicated forms part of the annual Board performance evaluation process. Corporate Governance
26 Enterprise Inns plc Annual Report 2005
Information about the Company, including reports, announcements and presentations are made available on its
website. 
The Company offers 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. Again 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 on internal control has been established for identifying, evaluating and managing risks
faced by the Group. This process is reviewed regularly by the Board and meets the requirements of the
guidance ‘Internal Control: Guidance for Directors on the Combined Code’ issued by the Institute of Chartered
Accountants in England and Wales in 1999 and the Turnbull guidance. 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 has been examining any changes and considering the integration processes as part of
their ongoing work.
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 2005 27
Directors’ Remuneration Report
INFORMATION NOT SUBJECT TO AUDIT:
Remuneration Committee and advisers
The Company’s Remuneration Committee (the ‘Committee’) is composed entirely of independent non-executive
directors and is chaired by Mr A J Stewart, its other members being Mr D A Harding and Mrs S E Murray. During
the year Mr M F Garner resigned from the Committee, prior to retiring from the Board. No member of the
Committee has any personal financial interest in the matters being decided. Mr H V Reid and Mr G E Tuppen
attend meetings at the invitation of the Committee if necessary except when their own remuneration is being
discussed.
The Committee’s key objectives are to:
 Determine and recommend to the Board, within agreed terms of reference, an overall remuneration
package for executive directors. 
 Monitor the level and structure of remuneration for senior management.
The Committee has been constituted and operated throughout the year in accordance with the provisions of
Schedule A and B of the Combined Code. This report also complies with Schedule 7A of the Companies Act
1985 which incorporates the Directors’ Remuneration Report Regulations 2002.
During the year the Committee and the Company has continued to use the services of Ernst & Young LLP (E&Y)
and they have provided specific advice on remuneration matters relating to share schemes and the Enterprise
Inns Incentive Plans. E&Y are the Group’s auditors and also provide advisory services in respect of non-audit
matters and taxation. In addition the Remuneration Committee has sought advice relating to directors
remuneration and the Enterprise Inns Incentive Plan 2005 from 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). 
The Committee, amongst other matters, determines the level of awards made under the Company’s incentive
plans, considers feedback from shareholders and undertakes an annual review of its effectiveness.
Remuneration Policy — Executive Directors 
The Remuneration Committee’s policy is designed to ensure that the level and structure of remuneration
arrangements allows the Company to attract, retain and motivate 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. In addition, the Committee is, at all times, mindful of remuneration practices in other relevant
companies. 
To achieve this, the remuneration package comprises:
 Fixed Elements: comprising basic salary, benefits and pensions; and
 Performance Related Elements: comprising short-term performance related cash and deferred share
bonuses and long-term performance arrangements satisfied by the award of shares. 
The Committee believes that these arrangements provide rewards which reflect an appropriate balance
between individual and Group performance and aligns the rewards to executive directors with the long-term
interest of shareholders. These awards are satisfied by the use of existing shares held by an Employee 
Benefit Trust. 28 Enterprise Inns plc Annual Report 2005
A significant proportion of the executive directors’ remuneration is linked to performance. For all future awards
of long-term incentives the Committee believes that it is appropriate for a mixture of average compound
annual adjusted Earnings per Share (EPS) growth and Total Shareholder Return (TSR) targets to apply to awards
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. 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 (the ‘Plans’)
For the year in review the Company had the following relevant 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. 
 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 also provides for participants
to earn non-pensionable cash bonuses and short-term and long-term share incentives.
 At the Annual General Meeting held on 20 January 2005 ordinary resolutions were passed adopting the
Enterprise Inns 2005 Annual Bonus Plan and the Enterprise Inns 2005 Long Term Incentive Plan (“the
2005 Plans”). 
The 2005 Plans have replaced the 1997 Plan and the 2002 Plan and no further awards will be made except
under the 2005 Plan.
Further details of the Plans are set out below:
Short-term share incentives under the 2002 Plan
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.
Performance related and short-term share incentives under the 2005 Plan
Under the terms of the 2005 Plan executive directors are eligible to participate in an annual cash bonus scheme as
determined by the Committee. The maximum award level under the Bonus Plan for the Chief Executive is 100% of
salary. For the other executive directors the maximum award level is 75% of salary. In addition awards under the Bonus
Plan are subject to demanding Company performance targets such that 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. 60% of any bonus earned will be paid in cash, with the remaining 40% deferred into
shares (a Deferred Share Award) which may not ordinarily be exercised for 36 months after the end of the performance
criteria period. 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 32.
Directors’ Remuneration Report Directors’ Remuneration Report
Enterprise Inns plc Annual Report 2005 29
Long-term share incentives under the 1997 Plan
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. 
Long-term share incentives under the 2002 Plan
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 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. 
Long-term share incentives under the 2005 Plans
Under the 2005 Plan, the long-term incentive has two elements:
 an award of Performance Shares (worth up to 150% of salary each year); and 
 an award of Matching Shares linked to the co-investment of up to 25% of salary in Investment shares,
which are then matched on a 2:1 basis. 
Shares that can count as Investment Shares are:
 shares subject to the Deferred Share Award under the 2005 Bonus Plan
 shares acquired by participants using their cash bonus or other funds, up to the 25% of salary maximum.
Awards vest subject to the satisfaction of a sliding scale of average compound annual adjusted EPS growth
targets and the Company’s 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 Performance and Matching
Share Awards are subject to the same performance conditions.
For awards made in 2004/05 one half of an award will be subject to a performance condition based on an
average compound annual adjusted EPS growth. The EPS based condition will measure the Company’s average
compound annual adjusted EPS growth by comparing the Company’s adjusted EPS for the year prior to the date
of grant (the “base year”) with the adjusted EPS for the third financial year following the base year, such that
awards will vest as follows:
Level of match under the relevant 
portion of Matching Award
Average compound annual Percentage of relevant portion of (Matching Award Shares: 
adjusted EPS growth Performance Award that vests Investment Shares)
Less than 7% 0% 0:1
7% 20% 0.4:1
15% 100% 2:1 30 Enterprise Inns plc Annual Report 2005
Straight-line vesting will occur if average compound annual adjusted EPS growth is between 7% and 15%. 
The remaining half of the award will be subject to a TSR condition which compares the Company’s TSR
performance over the three year period commencing on the date of grant with the TSR of the FTSE 100 (as at
the date of grant) as follows:
Level of match under the relevant
portion of Matching Award 
Company’s TSR Percentage of relevant portion of (Matching Award Shares:
ranking v the FTSE 100 Performance Award that vests Investment Shares)
Below median 0% 0:1
Median 20% 0.4:1
Upper quintile 100% 2:1
Straight-line vesting will occur if the Company’s TSR ranking is between median and upper quintile. 
TSR will be calculated by averaging the Net Return Index of each company over the six month period prior to
grant and vesting, unless the Committee determines that a shorter or longer period is a more appropriate way
of ensuring that the condition constitutes a fair measure of the Company’s TSR performance over the period. 
In addition, irrespective of the Company’s TSR performance, no part of this portion of the award will vest unless
the Company’s adjusted EPS grows by at least 10% over the performance period, unless the Committee
believes that it is inappropriate to apply this underpin.
For the avoidance of doubt, if both the threshold TSR hurdle of median performance against the FTSE 100 and
the threshold adjusted EPS growth hurdle of 7% average compound annual adjusted growth are met, at least
20% of the total award will vest.
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 month’s 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
Directors’ Remuneration Report Directors’ Remuneration Report
Enterprise Inns plc Annual Report 2005 31
The terms of appointment for Mr H V Reid, 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
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 re-invested) 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. 
Enterprise Inns plc TSR Chart
30 Sept 00 30 Sept 01 30 Sept 02 30 Sept 03 30 Sept 04 30 Sept 05
Enterprise Inns plc
FTSE 100
Value (£)
221
62
80
771
472
380
174
71
82
102
800
700
600
500
400
300
200
100
0-
The graph above shows the TSR, in terms of the change in value (with dividends re-invested) of an initial
investment of £100 on 30 September 2000 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. 32 Enterprise Inns plc Annual Report 2005
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 2005 2004
H V Reid 160 ————— 160 149
M F Garner (retired 20/01/05) 13 ————— 13 37
A J Stewart 43 ————— 43 37
D A Harding 40 ————— 40 34
S E Murray (appointed 03/11/04) 32 ————— 32 —
Executive directors
G E Tuppen — 480 21 288 192 120 1,101 802
D C George — 288 20 130 86 72 596 485
G W Harrison — 252 17 107 72 63 511 436
W S Townsend — 240 19 105 70 60 494 400
288 1,260 77 630 420 315 2,990 2,380
(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 2005 Plan and earned in the year ended
30 September 2005.
(c) The deferred bonus disclosed relates to the value of shares awarded as short-term incentives for the year
under the 2005 Plan and earned in the year ended 30 September 2005.
Awards of long-term share incentives made during the year under the 2005 Plan are disclosed on page 34.
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 2004
Exercise and
price 30 September 2005
£ 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
There are no performance criteria restricting the exercise of options held under the SAYE scheme. Directors’ Remuneration Report
Enterprise Inns plc Annual Report 2005 33
Gains made on share options
The directors did not exercise any share options under the Savings Related Share Option Scheme during 
the year. 
The market price of the Company’s shares on 30 September 2005 was 842.5 pence per share and the high and
low share prices during the year were 872.0 pence and 567.0 pence respectively.
Short-term share incentives
During the year short-term awards granted under the 1997 Plan on 18 December 2000 and 2002 Plan on 
16 April 2002 were exercised by the directors as follows:
Market price
at date of Number of Aggregate
Short-term Date of exercise shares gain
awards exercised exercise Pence exercised £000
G E Tuppen 22/09/05 823.5 24,908 205
D C George 22/09/05 823.5 14,848 122
G W Harrison 07/12/04 702.0 10,966 77
22/09/05 823.5 13,650 112
W S Townsend 22/09/05 823.5 11,256 93
609
During the year short-term incentives awarded under the 2005 Plan on a conditional basis were as follows:
Market value of
Conditional Date ordinary shares
short-term awards granted £000* Exercise period
G E Tuppen 01/12/2004 192 01/12/2007–01/06/2008
D C George 01/12/2004 86 01/12/2007–01/06/2008
G W Harrison 01/12/2004 72 01/12/2007–01/06/2008
W S Townsend 01/12/2004 70 01/12/2007–01/06/2008
* Market value is based on a percentage of basic salary earned as a result of achievement of performance
objectives for the year 2004/05. These awards have become unconditional since the end of the financial year.
It is intended that these awards will be used towards the participant’s co-investment in Investment shares for
the purposes of calculating the Matching Share award for the financial year 2005/06 under the long-term
incentive details of which are set out below.
These awards are included in the “deferred bonus” column in the table of Directors’ Remuneration on page 32.
Short-term awards made under the 2002 Plan in the years 2002 and 2003 have become unconditional. The
number of shares awarded to the directors, and still outstanding, and the market value of such shares at 
30 September 2005 (842.5 pence per share) in respect of these awards are as follows:
Unconditional Date Number of Market value
short-term awards granted shares £000 Exercise period
G E Tuppen 20/12/02 16,902 142 1/10/2006–20/12/2012
22/12/03* 12,049 102 1/10/2007–22/12/2013
D C George 20/12/02 10,142 85 1/10/2006–20/12/2012
22/12/03* 7,229 61 1/10/2007–22/12/2013
G W Harrison 20/12/02 9,296 78 1/10/2006–20/12/2012
22/12/03* 6,627 56 1/10/2007–22/12/2013
W S Townsend 20/12/02 8,028 68 1/10/2006–20/12/2012
22/12/03* 5,849 49 1/10/2007–22/12/2013
* These shares have been used to count towards the participant’s co-investment in Investment shares for the
purposes of calculating the Matching Share award or the financial year 2004/05 under the long-term incentive,
details of which are set out below. Directors’ Remuneration Report
34 Enterprise Inns plc Annual Report 2005
Long-term share incentives
During the year long-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
Long-term awards exercised exercise Pence exercised £000
G E Tuppen 22/09/05 823.5 124,990 1,029
D C George 22/09/05 823.5 76,708 632
G W Harrison 07/12/04 702.0 41,678 293
22/09/05 823.5 69,602 573
W S Townsend 22/09/05 823.5 56,642 466
2,993
During the year long-term incentives awarded under the 2005 Plan (which were granted subject to the
performance conditions set out on pages 28 and 29) on a conditional basis were as follows:
Conditional long-term awards granted in the year
Maximum Maximum
Date number of number of Market
granted Performance Matching Value
Shares* Shares £000 Vesting Period
G E Tuppen 04/02/05 105,278 35,092 960 04/02/2008–04/02/2010
D C George 04/02/05 63,167 21,054 576 04/02/2008–04/02/2010
G W Harrison 04/02/05 55,271 18,422 504 04/02/2008–04/02/2010
W S Townsend 04/02/05 52,639 17,546 480 04/02/2008–04/02/2010
* Based on 150% of salary at the start of the performance period (1 October 2004–30 September 2007). Market
value is calculated on the average share price over the 5 dealing days following announcement of the results
for the financial year 2003/04 (683.9 pence).
Details of long-term incentives awarded under the 2002 Plan on a conditional basis in previous years and
outstanding and the market value of such shares as at 30 September 2005 (842.5 pence per share) are as
follows:
Conditional long-term awards awarded in previous years
Date Number of Market Value
granted shares £000 Exercise period
G E Tuppen 20/12/02 157,211 1,325 1/10/2007–20/12/2016
D C George 20/12/02 94,327 795 1/10/2007–20/12/2016
G W Harrison 20/12/02 84,332 710 1/10/2007–20/12/2016
W S Townsend 20/12/02 77,064 649 1/10/2007–20/12/2016
* Salary is based on the average rate paid to participants between 1 October 2002 and 30 September 2005. As
compound adjusted 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. Directors’ Remuneration Report
Enterprise Inns plc Annual Report 2005 35
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 participants between 1 October 2003 and 30 September 2006.
Market value is taken at the start of the incentive period (461.8 pence). 
The performance criteria period for the 2001/02 long-term incentives awarded under the 2002 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 2005 (842.5 pence per share) in respect of
these awards are as follows:
Unconditional Date Number of Market Value
long-term awards granted shares £000 Exercise period
G E Tuppen 16/04/02 173,152 1,459 1/10/2006–16/04/2012
D C George 16/04/02 103,697 873 1/10/2006–16/04/2012
G W Harrison 16/04/02 94,265 794 1/10/2006–16/04/2012 
W S Townsend 16/04/02 82,269 693 1/10/2006–16/04/2012
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
Plans are as follows:
2005 2004
£000 £000
G E Tuppen 640 446
D C George 384 267
G W Harrison 336 239
W S Townsend 320 220
1,680 1,172
On behalf of the Board
A J Stewart
Chairman of the Remuneration Committee
22 November 2005 36 Enterprise Inns plc Annual Report 2005
Group Profit and Loss Account
for the year ended 30 September 2005
2005 2004
Notes £m £m
Turnover 2 919.9 712.7
Cost of sales 3 (387.3) (315.0)
Gross profit 532.6 397.7
Administrative expenses (44.6) (40.3)
Exceptional administrative expenses 4 — (14.8)
Other operating income 5 32.2 26.3
Group operating profit 6 520.2 368.9
Share of operating profit of associate — 19.0
Total operating profit 520.2 387.9
Net profit on disposal of tangible fixed assets 7 2.7 1.4
Profit on sale of associated undertaking 16 0.2 — 
Profit on ordinary activities before interest and taxation 523.1 389.3
Bank interest receivable 8.9 9.5
Interest payable and similar charges 9 (223.5) (181.0)
Exceptional interest payable and similar charges 9 (4.6) (4.6)
(219.2) (176.1)
Profit on ordinary activities before taxation 303.9 213.2
Tax on profit on ordinary activities 10 (92.1) (65.7)
Profit on ordinary activities after taxation and
attributable to members of the parent company 211.8 147.5
Ordinary dividends on equity shares 12 (61.4) (41.2)
Retained profit for the year 26 150.4 106.3
Earnings per share
Basic 13 61.9p 43.0p
Adjusted† 13 63.2p 47.5p
Diluted 13 61.1p 42.3p
† Excludes exceptional items and goodwill amortisation.  Enterprise Inns plc Annual Report 2005 37
Note of Historical Cost Profits 
and Losses
for the year ended 30 September 2005
Group Statement of Total Recognised
Gains and Losses
for the year ended 30 September 2005
2005 2004
£m £m
Profit for the financial year excluding share of associated undertakings 211.8 143.7
Share of profit in associated undertakings for the financial period — 3.8
Profit for the financial year attributable to members of the parent company 211.8 147.5
Unrealised surplus on revaluation of licensed estate 268.0 133.3
Share of unrealised surplus on revaluation of licensed estate in associate — 4.7
Actuarial gain/(loss) recognised in the defined benefit pension scheme 1.3 (0.7)
Movement of deferred tax asset related to pension scheme deficit (0.4) 0.1
Total recognised gains and losses relating to the year 480.7 284.9
2005 2004
£m £m
Reported profit on ordinary activities before taxation 303.9 213.2
Realised surpluses/(deficits) against historical costs on disposal of 
properties revalued in earlier years 0.2 (1.5)
Historical cost profit on ordinary activities before taxation 304.1 211.7
Historical cost profit for the year retained after taxation and dividends 150.6 104.8 38 Enterprise Inns plc Annual Report 2005
Group Balance Sheet
at 30 September 2005
2005 2004
Notes £m £m
Fixed assets
Intangible assets 14 75.3 79.6
Tangible assets 15 5,217.2 4,931.8
Investments in associated undertakings 16 — 0.2
5,292.5 5,011.6
Current assets
Assets held for resale 17 7.1 4.6
Debtors 18 81.4 85.7
Cash at bank and in hand 95.5 146.7
184.0 237.0
Creditors: amounts falling due within one year 19 (331.1) (309.4)
Net current liabilities (147.1) (72.4)
Total assets less current liabilities 5,145.4 4,939.2
Creditors: amounts falling due after more than one year 20 (3,304.5) (3,509.2)
Provision for liabilities and charges 21 (99.9) (73.7)
Net assets excluding pension liability 1,741.0 1,356.3
Pension liability 22 (0.1) (2.7)
1,740.9 1,353.6
Capital and reserves
Called up share capital 25 17.5 17.5
Share premium account 26 485.5 485.5
Revaluation reserve 26 810.0 541.8
Capital redemption reserve 26 7.6 7.6
Merger reserve 26 77.0 77.0
Other reserve 26 (55.6) (28.1)
Profit and loss account 26 398.9 252.3
Equity shareholders’ funds 27 1,740.9 1,353.6
Approved by the Board on 22 November 2005 and signed on its behalf by:
G E Tuppen
Directors
D C George
} Enterprise Inns plc Annual Report 2005 39
Balance Sheet
at 30 September 2005
2005 2004
Notes £m £m
Fixed assets
Tangible assets 15 2,722.6 2,569.6
Investments 16 1,010.7 695.7
3,733.3 3,265.3
Current assets
Assets held for resale 17 4.9 3.6
Debtors 18 240.2 483.2
Cash at bank and in hand — —
245.1 486.8
Creditors: amounts falling due within one year 19 (1,017.8) (845.5)
Net current liabilities (772.7) (358.7)
Total assets less current liabilities 2,960.6 2,906.6
Creditors: amounts falling due after more than one year 20 (1,479.0) (1,652.6)
Provision for liabilities and charges 21 (88.5) (79.8)
1,393.1 1,174.2
Capital and reserves
Called up share capital 25 17.5 17.5
Share premium account 26 485.5 485.5
Revaluation reserve 26 621.3 483.4
Capital redemption reserve 26 7.6 7.6
Other reserve 26 (55.6) (28.1)
Profit and loss account 26 316.8 208.3
Equity shareholders’ funds 1,393.1 1,174.2
Approved by the Board on 22 November 2005 and signed on its behalf by:
G E Tuppen
Directors
D C George
} 40 Enterprise Inns plc Annual Report 2005
Group Statement of Cash Flows
for the year ended 30 September 2005
2005 2004 
Notes £m £m
Net cash inflow from operating activities 6 522.9 403.2
Return on investments and servicing of finance
Interest received 8.9 13.1
Interest paid (244.0) (171.4)
Issue costs of long-term loans (1.9) (9.9)
(237.0) (168.2)
Taxation (52.8) (36.3)
Capital expenditure and financial investment
Payments to acquire public houses (14.3) (12.9)
Payments made on improvements to public houses (48.8) (50.9)
Payments to acquire other fixed assets (0.8) (1.8)
Receipts from sales of tangible fixed assets 47.0 110.5
Payments to acquire shares held in employee benefit trusts (22.6) (24.3)
Receipts from exercise of employee options 3.3 —
(36.2) 20.6
Acquisitions and disposals
Purchase of subsidiaries — (247.4)
Net cash acquired with subsidiaries — 191.3
Expenses of acquisitions paid — (2.6)
— (58.7)
Equity dividends paid (47.9) (31.8)
Cash inflow before financing 149.0 128.8
Financing
Issue of ordinary share capital — 51.5
Share issue costs — (0.3)
Debt due within 1 year — new short-term loans — 30.0
— repayment of short-term loans — (160.0)
Debt due beyond 1 year — new long-term loans 770.9 1,028.2
— repayment of long-term loans (971.1) (573.9)
Repayment of Deep Discount Bonds — (361.5)
(200.2) 14.0
(Decrease)/increase in cash 28 (51.2) 142.8
Reconciliation of net cash flow to movement in net debt
2005 2004
Notes £m £m
(Decrease)/increase in cash in the year 28 (51.2) 142.8
Cash outflow from change in debt 200.2 37.1
Issue costs of new long-term loans 1.9 9.9
Change in net debt resulting from cash flows 28 150.9 189.8
Acquired with subsidiaries — (2,171.0)
Amortisation of issue costs and discounts/premiums on long-term loans (4.3) (4.0)
Amortisation of interest rate swaps 17.7 7.7
Provision against interest rate swaps — (2.5)
Write off of unamortised issue costs (4.6) (4.6)
Movement in net debt in the year 159.7 (1,984.6)
Net debt at 1 October 28 (3,389.4) (1,404.8)
Net debt at 30 September 28 (3,229.7) (3,389.4) Enterprise Inns plc Annual Report 2005 41
Notes to the Accounts
at 30 September 2005
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.
Interest rate swaps
The Group’s criteria for accounting for interest rate swaps as hedges are:
 The instrument must be related to an asset or a liability; and
 It must change the character of the interest rate by converting a variable rate to a fixed rate or vice versa.
Interest 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
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. 42 Enterprise Inns plc Annual Report 2005
1 Accounting Policies (continued)
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 50 years on a straight-line basis to
residual value.
Leasing and hire purchase commitments
Rentals paid under operating leases are charged to the Profit and Loss Account on a straight-line basis over the
lease term.
Assets held for resale
Assets held for resale are stated at the lower of cost incurred and net realisable value. Net realisable value is
based on estimated selling price less further costs expected to be incurred on disposal.
Deferred taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of
timing differences between the treatment of certain items for taxation and accounting purposes.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the
balance sheet date where transactions or events that result in an obligation to pay more, or a right to pay less,
tax in the future have occurred at the balance sheet date, with the following exceptions:
 Provision is made for gains on disposal of fixed assets that have been rolled over into replacement assets
only where, at the balance sheet date, there is a binding commitment to dispose of the replacement assets
with no likely subsequent rollover or available capital losses.
 Provision is made for deferred tax on gains on revalued fixed assets only where there is a commitment to
dispose of the revalued assets and the attributable gain can neither be rolled over or eliminated by capital
losses.
 Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not
that there will be suitable taxable profits from which the future reversal of the underlying timing differences
can be deducted.
Deferred tax is measured on an 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. 
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 43
Notes to the Accounts
at 30 September 2005 
1 Accounting Policies (continued)
A combined defined contribution and defined benefit scheme was acquired with Unique in 2004 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.
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. Beer and cider sales and wines, spirits and minerals
sales are recognised when these goods are delivered to our customers. Rents receivable from the licensed estate
are recognised in the accounting period to which the income relates. 
The Group operates in one principal area of activity, that of a public house landlord. This operation takes place
solely in the United Kingdom.
Turnover is derived as follows:
2005 2004
£m £m
Re-analysed
Beer and cider sales 616.9 482.2
Wines, spirits and minerals sales 36.1 33.1
Rents receivable from licensed estate 266.9 196.8
Sales to customers by managed houses — 0.6
919.9 712.7 44 Enterprise Inns plc Annual Report 2005
3Cost of Sales
2005 2004
£m £m
Re-analysed
Beer and cider cost of sales 342.8 273.6
Wines, spirits and minerals cost of sales 29.1 27.5
Leasehold charges 8.7 6.5
Repairs and maintenance 6.7 6.8
Cost of sales by managed houses — 0.6
387.3 315.0
4 Exceptional administrative expenses
2005 2004
£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
2005 2004
£m £m
Property income other than rent from the licensed estate 1.9 1.6
Income from amusement and other machines 30.3 24.7
32.2 26.3
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 45
6 Operating profit
(a) This is stated after charging:
2005 2004
£m £m
Auditors’ remuneration — audit fees 0.3 0.3
— non-audit fees 0.3 0.2
Amortisation of goodwill 4.3 3.4
Depreciation of owned fixed assets 1.4 1.6
Depreciation of short leasehold properties 2.2 1.1
Operating lease rentals — buildings 5.8 5.7
Operating lease rentals — plant and machinery 0.2 0.4
In addition to the above, £0.7m was paid to the auditors during 2004 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:
2005 2004
£m £m
Operating profit 520.2 368.9
Depreciation and amortisation 7.9 6.1
Share based expense recognised in operating profit 2.3 1.6
Decrease/(increase) in debtors 5.3 (7.3)
(Decrease)/increase in creditors (12.0) 25.5
Increase in provisions 1.7 6.0
(Increase)/decrease in assets held for resale (2.5) 2.4
Net cash inflow from operating activities 522.9 403.2
Cash outflows in respect of exceptional administrative expenses were £8.9m (2004 — £2.4m).
7 Net profit on disposal of tangible fixed assets
2005 2004
£m £m
Profits on disposal of tangible fixed assets 20.0 17.5
Losses on disposal of tangible fixed assets (5.6) (6.7)
Provision for loss on disposal of tangible fixed assets (11.7) (9.5)
Net profit on disposal of tangible fixed assets 2.7 1.3
Share of profit on disposal of tangible fixed
assets in associate — 0.1
2.7 1.4
There is no taxation effect of the above exceptional items due to the application of capital gains rollover relief.
Notes to the Accounts
at 30 September 2005 46 Enterprise Inns plc Annual Report 2005
Notes to the Accounts
at 30 September 2005
8 Staff costs
2005 2004
£m £m
Wages and salaries 25.5 22.6
Social security costs 3.0 2.5
Other pension costs 1.7 1.8
30.2 26.9
The average monthly number of employees comprised:
2005 2004
No. No.
Operations staff 230 224
Administration staff 309 283
539 507
Details of directors’ remuneration are set out on pages 27 to 35.
9 Interest payable and similar charges
2005 2004
£m £m
Bank loans and overdrafts 34.6 30.8
Debentures/secured bonds 180.6 123.0
Other interest payable and finance costs 3.7 4.2
Amortisation of issue costs and discounts on debt instruments 4.6 9.3
223.5 167.3
Share of interest payable in associate — 13.7
Interest payable and similar charges 223.5 181.0
Exceptional finance costs 4.6 4.6
The exceptional finance costs incurred during 2005 relate to the write-off of unamortised finance costs following
a refinancing exercise. The tax effect of this is £1.4m.  Enterprise Inns plc Annual Report 2005 47
10 Taxation
a) Tax on profit on ordinary activities
The tax charge is made up as follows:
2005 2004
Current tax £m £m
UK corporation tax 69.6 50.7
Share of associate’s current tax — 0.4
Adjustments in respect of prior years (2.6) (3.3)
Total current tax (note 10b) 67.0 47.8
Deferred tax
Origination and reversal of timing differences (note 21) 25.1 16.7
Share of associate’s deferred tax — 1.2
Total deferred tax 25.1 17.9
Tax on profit on ordinary activities 92.1 65.7
b) Factors affecting the current tax charge for the year
2005 2004
£m £m
Group profit on ordinary activities before tax 303.9 213.2
Profit on ordinary activities before tax at 30% (2004 — 30%) 91.2 64.0
Effects of:
Expenses not deductible for tax purposes 1.3 0.2
Tax allowances in excess of depreciation (12.2) (7.6)
Short-term timing differences (10.1) (5.2)
Tax timing differences relating to pension liability (0.6) —
Adjustments in respect of prior years (2.6) (3.3)
Prior year associate adjustment — (0.3)
Total current tax charge (note 10a) 67.0 47.8
c) Factors that may affect future tax charges
Other factors that may affect future tax charges include the availability of accelerated tax depreciation and
changes in legislation.
11 Profit attributable to members of the parent company
The profit after tax dealt with in the accounts of the parent company was £172.2m (2004 — £189.9m). Retained
profit for the year amounted to £110.8m (2004 — £148.7m).
12 Dividends
2005 2004
£m £m
Ordinary dividends on equity shares:
Interim paid 5.6 pence (2004 — 3.6 pence) 19.2 12.5
Final proposed 12.4 pence (2004 — 8.4 pence) 42.2 28.7
61.4 41.2
The dividends relating to the shares held by the Employee Benefit Trust have been waived. 
Notes to the Accounts
at 30 September 2005 48 Enterprise Inns plc Annual Report 2005
Notes to the Accounts
at 30 September 2005
13Earnings per ordinary share
The calculation of basic earnings per ordinary share is based on earnings of £211.8m (2004 — £147.5m) and on
342,456,660 (2004 — 342,806,374) 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 £216.4m
(2004 — £163.0m) and on 342,456,660 (2004 — 342,806,374) 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: 2005 2004
£m £m
Profit after tax 211.8 147.5
Exceptional administrative expenses — 14.8
Goodwill amortisation 4.3 3.4
Exceptional finance costs 4.6 4.6
Net profit on disposal of tangible fixed assets (2.7) (1.4)
Profit on sale of associated undertaking (0.2) —
Taxation impact of exceptional items (1.4) (5.9)
Adjusted earnings 216.4 163.0
The diluted earnings per share is based on profit for the year of £211.8m (2004 — £147.5m), and on 346,838,542
(2004 — 348,935,535) ordinary shares, calculated as follows:
2005 2004
No. No.
Basic weighted average number of shares 342,456,660 342,806,374
Executive share option plan 1,617,410 1,840,357
Enterprise Inns Quest sharesave scheme 565,576 548,599
Long-term and short-term incentive plans 2,198,896 3,740,205
346,838,542 348,935,535
14 Intangible fixed assets
Group
Goodwill £m
Cost:
At 1 October 2004 and 30 September 2005 86.4
Amortisation:
At 1 October 2004 6.8
Provided during the year 4.3
At 30 September 2005 11.1
Net book value:
At 30 September 2005 75.3
At 30 September 2004 79.6
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. Enterprise Inns plc Annual Report 2005 49
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 2004 4,616.3 271.8 33.4 17.3 4,938.8
Reclassification† 3.4 (5.8) 2.4 — —
Additions 59.3 4.0 0.4 1.3 65.0
Provision for loss on disposal (8.5) (2.4) (0.8) — (11.7)
Revaluation 252.7 11.2 4.1 — 268.0
Adjustments to prior
year acquisitions* 10.9 (46.5) 33.6 — (2.0)
Disposals (27.0) (2.4) (1.1) (1.0) (31.5)
At 30 September 2005 4,907.1 229.9 72.0 17.6 5,226.6
Depreciation:
At 1 October 2004 — — 4.0 3.0 7.0
Charge for the year — — 2.2 1.4 3.6
Disposals — — (0.7) (0.5) (1.2)
At 30 September 2005 — — 5.5 3.9 9.4
Net book value:
At 30 September 2005 4,907.1 229.9 66.5 13.7 5,217.2
At 30 September 2004 4,616.3 271.8 29.4 14.3 4,931.8
† Reclassification includes movements arising from a review of the lease terms of the properties acquired with
Unique. 
* Adjustments made following a review of the provisional fair values attributed to each property acquired with
Unique. 
Company
Cost or valuation:
At 1 October 2004 2,419.9 117.0 23.3 15.0 2,575.2
Reclassifications 3.5 (6.5) 3.0 — —
Additions 38.9 2.7 0.1 1.3 43.0
Provision for loss on disposal (4.9) (1.8) (0.2) — (6.9)
Revaluations 136.1 4.0 — — 140.1
Disposals (19.1) (1.8) (0.9) — (21.8)
At 30 September 2005 2,574.4 113.6 25.3 16.3 2,729.6
Depreciation:
At 1 October 2004 — — 3.6 2.0 5.6
Charge for the year — — 0.7 1.2 1.9
Disposals — — (0.5) — (0.5)
At 30 September 2005 — — 3.8 3.2 7.0
Net book value:
At 30 September 2005 2,574.4 113.6 21.5 13.1 2,722.6
At 30 September 2004 2,419.9 117.0 19.7 13.0 2,569.6
Notes to the Accounts
at 30 September 2005 50 Enterprise Inns plc Annual Report 2005
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 2005
Gross book value 4,879.9 2,522.9
Accumulated depreciation (4.6) (3.2)
Net book value 4,875.32,519.7
At 1 October 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
(b) Over 80% of the estate, comprising those licensed premises subject to debt security and securitisation
restrictions, was valued at existing use value by Humberts Leisure Limited and Christie + Co., external
Chartered Surveyors. Properties not subject to debt security or securitisation restrictions were valued at their
existing use value internally by the Head of Estates, a Chartered Surveyor. The last external valuation of those
pubs that have been valued by an internal Chartered Surveyor was at 30 September 2004. Properties held for
disposal were valued by the directors at their open market value for sale less selling costs. 
The net book value of licensed premises comprises:
Group Company
2005 2004 2005 2004
£m £m £m £m
Licensed estate at valuation:
Freehold properties 4,899.5 4,589.0 2,566.8 2,411.3
Long leasehold properties 229.9 270.0 113.6 117.0
Short leasehold properties 66.5 14.4 21.5 4.9
5,195.9 4,873.4 2,701.9 2,533.2
Licensed estate at cost:
Freehold properties 7.6 27.3 7.6 8.6
Long leasehold properties — 1.8 — —
Short leasehold properties — 15.0 — 14.8
7.6 44.1 7.6 23.4
5,203.5 4,917.5 2,709.5 2,556.6
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 2005 4,158.0 200.9 60.5
At 30 September 2004 4,118.1 251.8 12.6
Company
At 30 September 2005 1,971.2 91.1 18.3
At 30 September 2004 1,949.7 97.2 2.8
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 51
16 Investments
Investment in associated
undertaking (unlisted)
Group £m
Cost and net book value:
At 1 October 2004 0.2
Disposal of associated undertaking (0.2)
At 30 September 2005 —
Disposal of associated undertaking 
During the year, Enterprise Inns plc sold its holding of shares in Warwickshire Hotels Limited (WHL), an associate
undertaking. WHL owns one hotel, The Westley Hotel, Acocks Green, Birmingham (Westley).
The issued share capital of WHL is 20,000 ordinary shares of £1 each and Enterprise was the legal and beneficial
owner of 50% of these shares, purchased at a cost of £10,000 in May 1997. The remaining 50% of the ordinary
shares were owned by the operator of the Westley, purchased at a cost of £10,000. 
Enterprise earned 50% of the profits of WHL during the 8 year period of ownership and this amounted to
£225,000 at the date of sale. This amount earned had been accrued in the accounts but no cash distribution had
been made by WHL.
The shares were sold in April 2005 due to the retirement of the operator of the hotel. The shares were acquired by
Simply Inns Limited for a total cash consideration of £980,000, with £490,000 paid to Enterprise and £490,000
paid to the other shareholder. Enterprise realised a profit on disposal of £255,000, before costs of £15,000.
The sale followed a thorough marketing exercise and competitive sale tendering process conducted on behalf of
the owners by Humberts Leisure Limited. At the date of sale, David George, Finance Director, and his immediate
family owned 19.7% of the ordinary shares and 100% of the preference shares of Simply Inns Limited.
Subsidiary 
undertakings shares
Company £m
Cost:
At 1 October 2004 719.3
Additions 315.0
At 30 September 2005 1,034.3
Provision
At 1 October 2004 and 30 September 2005 (23.6)
Net book value:
At 30 September 2005 1,010.7
At 30 September 2004 695.7
Securitisation of subsidiary company 
The securitisation of assets in Unique Pub Properties Limited (UPP) means that there are restrictions over the
distribution of cash outside of this company. All cash held in bank accounts in UPP is securitised. Only on
satisfaction of various criteria may UPP distribute excess cash to other Group companies.
Notes to the Accounts
at 30 September 2005 52 Enterprise Inns plc Annual Report 2005
16 Investments (continued)
Details of the investments in which the Group or the Company holds more than 20% (unless indicated) of the
nominal value of any class of share capital are as follows. Due to the large number of bodies 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
Cumulative 100%
Redeemable
Preference
Shares
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 of
shares licensed properties
Cumulative 100%
Redeemable
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
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 53
Notes to the Accounts
at 30 September 2005
17 Assets held for resale
Group Company
2005 2004 2005 2004
£m £m £m £m
Fixtures and fittings and
stock purchased from tenants 7.1 4.6 4.9 3.6
18 Debtors
Group Company
2005 2004 2005 2004
£m £m £m £m
Amounts falling due within one year:
Trade debtors 55.3 68.9 41.7 35.8
Amounts owed by subsidiary undertakings — — 174.9 433.9
Other debtors 0.4 1.9 0.2 0.2
Prepayments and accrued income 25.0 13.5 22.9 11.9
80.7 84.3 239.7 481.8
Amounts falling due after more than one year:
Trade debtors 0.7 1.1 0.5 1.1
Other debtors — 0.3 — 0.3
81.4 85.7 240.2 483.2
19 Creditors: amounts falling due within one year
Group Company
2005 2004 2005 2004
£m £m £m £m
Bank overdraft — — 3.5 1.1
Loans — secured 4.4 4.6 6.4 6.6
Loans — securitised 21.3 22.3 — —
Trade creditors 10.2 37.2 10.2 10.9
Amounts due to subsidiary undertakings — — 757.8 634.0
Corporation tax 46.0 31.8 29.3 21.1
Other creditors including taxation
and social security 45.2 43.8 37.5 40.5
Accruals and deferred income 161.8 141.0 130.9 102.6
Proposed dividend 42.2 28.7 42.2 28.7
331.1 309.4 1,017.8 845.5 54 Enterprise Inns plc Annual Report 2005
20 Creditors: amounts falling due after more than one year
Group Company
2005 2004 2005 2004
£m £m £m £m
Loans — secured 257.7 584.2 293.5 472.3
Loans — securitised 1,841.5 1,720.6 — —
Debentures — secured 1,200.3 1,204.4 1,180.5 1,180.3
Accruals and deferred income 5.0 — 5.0 —
3,304.5 3,509.2 1,479.0 1,652.6
21 Provisions for liabilities and charges
Group Company
2005 2004 2005 2004
£m £m £m £m
Deferred tax (note 21a) 92.2 67.7 85.6 79.8
Onerous lease (note 21b) 7.7 6.0 2.9 —
99.9 73.7 88.5 79.8
a) Deferred Tax
Group Company
£m £m
At 1 October 2004 67.7 79.8
Deferred tax charge in the profit and loss account (note 10) 25.1 5.8
Deferred tax on pension liability (0.6) —
At 30 September 2005 92.2 85.6
The major components of the amounts provided are as follows:
Group Company
2005 2004 2005 2004
£m £m £m £m
Accelerated capital allowances 103.6 88.3 85.6 79.3
Short-term timing differences (11.4) (20.6) — 0.5
Provision for deferred tax 92.2 67.7 85.6 79.8
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 55
Notes to the Accounts
at 30 September 2005
21 Provisions for liabilities and charges (continued)
The amounts of deferred tax not provided in the accounts are as follows:
Group Company
2005 2004 2005 2004
(re-stated) (re-stated)
£m £m £m £m
Rolled over gains 24.3 21.8 24.3 21.8
Unrealised surplus on the revaluation
of fixed assets 494.2 443.7 320.5 292.0
Total deferred tax not provided 518.5 465.5 344.8 313.8
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 2004 restatement arises from a review of the historical tax base of the Group’s properties.
b) Onerous lease provision
Group Company
£m £m
At 1 October 2004 6.0 —
Reclassification * 3.3 3.3
Charge for the year (0.9) (0.3)
Expenditure (0.7) (0.1)
At 30 September 2005 7.7 2.9
The provision is expected to be utilised over the next 6 years. 
* Amounts reclassified from creditors: amounts falling due within one year. 56 Enterprise Inns plc Annual Report 2005
22 Pension liability 
Group Company
£m £m
Gross pension provision
At 1 October 2004 3.8 —
Movement during the year (3.7) —
At 30 September 2005 0.1 —
Related deferred tax asset
At 1 October 2004 (1.1) —
Movement during the year 1.1 —
At 30 September 2005 — —
Net pension liability
At 30 September 2005 0.1 —
At 30 September 2004 2.7 —
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. Further contributions of £80,000 per month in addition to the employer’s regular contribution were made
during the year 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 2005. This has been updated to 30 September 2005. 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:
2005 2004
% %
Rate of increase in salaries n/a 3.90
Rate of increase of pensions in payment 3.30 3.30
Rate of increase of pensions in deferment 2.80 2.90
Discount rate 5.00 5.50
Inflation assumption 2.80 2.90
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 57
Notes to the Accounts
at 30 September 2005
22 Pension liability (continued) 
The assets in the scheme and the expected rate of return were:
At 30 September At 30 September At 30 September At 30 September
2005 2005 2004 2004
£m £m
Equities 6.00% 12.0 6.50% 9.4
Bonds 4.20% 4.7 4.70% 3.1
Total market value of assets 16.7 12.5
Present value of liabilities (16.8) (16.3)
Deficit in the scheme (0.1) (3.8)
Related deferred tax asset — 1.1
Net pension liability (0.1) (2.7)
Analysis of the amount charged to operating profit in respect of the defined benefit section of the
Pension Plan
Year Six months
ended ended 
30 September 30 September
2005 2004
£m £m
Current service cost — administrative expenses 0.3 0.3
Curtailment (credit)/cost — administrative expenses/exceptional administrative expenses (0.3) 0.4
Total operating charge — 0.7
Analysis of the amount charged to other financial costs
Year Six months
ended ended 
30 September 30 September
2005 2004
£m £m
Expected return on pension scheme assets 0.8 0.4
Interest on pension liabilities (0.8) (0.4)
Net charge — — 58 Enterprise Inns plc Annual Report 2005
22 Pension liability (continued) 
Analysis of the amount recognised in the Statement of Total Recognised Gains and Losses
Year Six months
ended ended 
30 September 30 September
2005 2004
£m £m
Actual return less expected return on assets 1.4 (0.2)
Experience gains and losses on liabilities 1.4 —
Changes in assumptions (1.5) (0.5)
Actuarial gain/(loss) recognised in the Statement of Total
Recognised Gains and Losses 1.3 (0.7)
Movement in deficit during the period
Year Six months
ended ended 
30 September 30 September
2005 2004
£m £m
Deficit in scheme at start of period (3.8) (3.4)
Movement in period:
Current service cost (0.3) (0.3)
Contributions 2.4 1.0
Curtailment credit/(cost) 0.3 (0.4)
Actuarial gain/(loss) 1.3 (0.7)
Deficit in scheme at end of period (0.1) (3.8)
History of experience gains and losses
Year Six months
ended ended 
30 September 30 September
2005 2004
£m £m
Difference between expected and actual return on scheme assets:
Amount (£m) 1.4 (0.2)
Percentage of scheme assets 8% -2%
Experience gains and losses on scheme liabilities:
Amount (£m) 1.4 —
Percentage of scheme liabilities 8% 0%
Total amount recognised in Statement of Total Recognised Gains and Losses:
Amount (£m) 1.3 (0.7)
Percentage of scheme liabilities 8% -4%
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 59
Notes to the Accounts
at 30 September 2005
23Financial 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 60 to 65. 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 (2004 — 100%). 
The interest rate profile of financial liabilities of the Group at 30 September was as follows:
Total Fixed rate
financial financial Floating
liabilities liabilities rate
£m £m £m
2005 3,325.2 3,325.2 —
Sterling
2004
Sterling 3,536.1 3,536.1 —
2005 2004
£m £m
Book value of fixed rate financial liabilities 3,325.2 3,536.1
Weighted average period of fixed interest rate financial liabilities 13.7 years 13.9 years
Weighed average interest rate of fixed rate financial liabilities 6.90% 6.95%
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 85% of the Group’s
borrowings were due to mature in more than five years (2004 — 79%). 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 instruments were valued at market value as at 30 September 2005 by J C Rathbone, independent valuers.  60 Enterprise Inns plc Annual Report 2005
23Financial Instruments (continued)
The book and fair values of financial assets and liabilities are as follows:
2005 2005 2004 2004
Book Value Fair Value Book Value Fair Value
£m £m £m £m
Senior Debt and Loan Notes (256.5) (260.0) (430.1) (435.0)
Debenture — issued 3 February 1999 (59.2) (58.1) (59.2) (56.3)
Secured bond — issued 9 May 2000 (124.1) (141.3) (124.1) (133.2)
Secured bond — issued 15 February 2001 (123.4) (139.2) (123.3) (133.6)
Secured bond — issued 26 February 2002 (272.0) (298.2) (271.8) (282.0)
Secured bond — issued 3 March 2003 (601.8) (650.4) (601.9) (615.1)
Securitised bond A1 — issued 30 March 1999 —— (158.3) (159.4)
Securitised bond A1N — issued 25 February 2005 (124.8) (125.0) ——
Securitised bond A2R — issued 20 September 2002 —— (271.6) (275.1)
Securitised bond A2N — issued 25 February 2005 (261.3) (261.8) ——
Securitised bond A3 — issued 30 March 1999 (460.4) (493.4) (460.9) (469.9)
Securitised bond A4 — issued 20 September 2002 (536.5) (565.9) (360.6) (364.2)
Securitised bond M — issued 30 March 1999 (249.7) (267.4) (251.5) (255.6)
Securitised bond N — issued 20 September 2002 (197.6) (208.8) (198.1) (209.7)
Cash 95.5 95.5 146.7 146.7
Bridging facility — issued 30 March 2004 —— (154.1) (154.9)
Subtotal (3,171.8) (3,374.0) (3,318.8) (3,397.3)
£550m interest rate swap expiring 1 June 2012 (25.4) (66.8) (28.7) (51.4)
£91m interest rate swap expiring 30 December 2012 (8.2) (9.1) (10.6) (9.2)
£103m interest rate swap expiring 30 December 2012 (8.3) (10.1) (11.1) (10.6)
£103m interest rate swap expiring 30 December 2012 (8.4) (10.1) (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)
£90m interest rate swap expiring 30 September 2013 (7.6) (12.6) ——
£154.9m interest rate swap expiring 31 December 2005 —— — 0.3
Net Debt (3,229.7) (3,482.7) (3,389.4) (3,486.4)
Other financial liabilities * (7.7) (7.7) (6.0) (6.0)
(3,237.4) (3,490.4) (3,395.4) (3,492.4)
* Relates to onerous leases held within provisions for liabilities and charges.
During the year, the Group issued £170 million of Class A4 Asset Backed Notes due 2027. These notes are at a
fixed interest rate of 5.7% and the proceeds were used to repay a short-term bridge facility put in place upon the
acquisition of Unique. At the same time the Asset Backed A1 & A2R notes were refinanced to take advantage of
favourable market conditions, the terms and conditions of these notes remain unchanged following the
refinancing.
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 61
23Financial Instruments (continued)
The Group’s other financial liabilities fall due as set out below:
2005 2004
£m £m
In more than five years 3.4 3.8
After two years but not more than five years 2.0 1.0
In more than one year but not more than two years 1.1 0.8
Within one year or less 1.2 0.4
7.7 6.0
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 2005 is
£50.8m (2004 — £18.5m). 
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 £9.0m. The remaining £41.8m
will be realised in a period greater than one year. 
Unrecognised gains and losses and deferred gains and losses on financial instruments used for hedging are as
follows:
Gains Losses Total
2005 £m £m £m
Gains and losses unrecognised at 30 September 2005 — (50.8) (50.8)
Of which:
Gains and losses expected to be recognised in the
Profit and Loss Account in 2006 — (9.0) (9.0)
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 recognised in the Profit and Loss Account in 2005 0.2 (3.7) (3.5)
Notes to the Accounts
at 30 September 2005 62 Enterprise Inns plc Annual Report 2005
24 Loans
Group Company
2005 2004 2005 2004
£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 140 basis points. — 120.0 — 120.0
Term loan repayable by six-monthly instalments. A
proportion was repaid on 15 April 2004 and 21 January
2005. 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 140 basis points. 260.0 315.0 260.0 315.0
260.0 435.0 260.0 435.0
Senior debt issue costs (3.5) (4.9) (3.5) (4.9)
256.5 430.1 256.5 430.1
Debenture and Secured Bond finance
6% debenture repayable by 3 February 2014 60.0 60.0 60.0 60.0
Discount on the issue of secured bonds (0.4) (0.4) (0.4) (0.4)
Debenture issue costs (0.4) (0.4) (0.4) (0.4)
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 (0.7) (0.8) (0.7) (0.8)
Secured bonds issue costs (0.9) (0.9) (0.9) (0.9)
6.375% secured bonds repayable on 26 September 2031 275.0 275.0 275.0 275.0
Discount on the issue of secured bonds (0.9) (1.0) (0.9) (1.0)
Secured bonds issue costs (2.1) (2.2) (2.1) (2.2)
6.5% secured bonds repayable on 6 December 2018 600.0 600.0 600.0 600.0
Premium on the issue of secured bonds 5.8 6.2 5.8 6.2
Secured bonds issue costs (4.0) (4.3) (4.0) (4.3)
Securitised Bond finance
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) — —
A1N – LIBOR + 0.38% secured bonds repayable
on 30 September 2010 125.0 — — —
Secured bonds issue costs (0.2) — — —
Notes to the Accounts
at 30 September 2005 Enterprise Inns plc Annual Report 2005 63
Notes to the Accounts
at 30 September 2005
24 Loans (continued)
Group Company
2005 2004 2005 2004
£m £m £m £m
A2R – LIBOR + 0.48% secured bonds repayable on 
30 September 2013 — 275.1 — —
Fair value balance on the bonds — (0.3) — —
Secured bonds issue costs — (3.2) — —
A2N – LIBOR + 0.16% secured bonds repayable on 
30 September 2013 261.8 — — —
Secured bonds issue costs (0.5) — — —
A3 – 6.542% secured bonds repayable on 
30 June 2027 435.0 435.0 — —
Fair value balance on the bonds 35.3 38.2 — —
Secured bonds issue costs (9.9) (12.3) — —
A4 – 5.659% secured bonds repayable on 
30 June 2027 535.0 365.0 — —
Fair value balance on the bonds 0.3 0.4 — —
Premium on the issue of secured bonds 7.2 — — —
Secured bonds issue costs (6.0) (4.8) — —
M – 7.395% secured bonds repayable on 
30 March 2024 225.0 225.0 — —
Fair value balance on the bonds 31.7 33.7 — —
Secured bonds issue costs (7.0) (7.2) — —
N – 6.464% secured bonds repayable on 
30 March 2032 190.0 190.0 — —
Fair value balance on the bonds 10.3 10.7 — —
Secured bonds issue costs (2.7) (2.6) — —
Bank and Bridging finance
Bridging facility repayable 31 December 2005 — 154.9 — —
Issue costs — (0.8) — —
Overdraft — — 3.5 1.1
Total loans before interest rate swaps 3,267.3 3,465.5 1,440.5 1,611.5
Interest rate swaps
£550m interest rate swap expiring on 1 June 2012, 
coupon 6.66% until 1 June 2012 25.4 28.7 43.4 48.8
£91m interest rate swap expiring 30 December 2012, 
coupon 7.934% 8.2 10.6 — —
£103m interest rate swap expiring 30 December 2012, 
coupon 7.873% 8.3 11.1 — —
£103m interest rate swap expiring 30 December 2012, 
coupon 7.873% 8.4 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 — —
£90m interest rate swap expiring 30 September 2013, 
coupon 6.079% 7.6 — — —
3,325.2 3,536.1 1,483.9 1,660.3 64 Enterprise Inns plc Annual Report 2005
Notes to the Accounts
at 30 September 2005
24 Loans (continued)
Security 
Senior debt finance 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 subsidiaries,
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 value of fixed assets secured by way of a fixed or floating charge as at
30 September 2005 was £5,217.2m (2004 — £4,931.8m).
Debenture and secured bond finance in the Company is secured pursuant to Trust Deeds entered into by
Enterprise Inns plc. 
 The debenture issued on 3 February 1999 is secured by fixed charges over 213 properties created in a trust
deed dated 3 February 1999.
 The secured bonds issued on 9 May 2000 are secured by fixed charges over 405 properties created in a trust
deed dated 9 May 2000.
 The secured bonds issued on 15 February 2001 are secured by fixed charges over 361 properties created in a
trust deed dated 15 February 2001.
 The secured bonds issued on 26 February 2002 are secured by fixed charges over 639 properties created in a
trust deed dated 26 February 2002.
 The secured bonds issued on 3 March 2003 are secured by fixed charges over 1,360 properties created in a
trust deed dated 3 March 2003.
Securitised bond finance is secured pursuant to the Issuer Deed of Charge dated 25 February 2005 entered into
by the Unique Pub Finance Company Plc (Issuer), Unique Pub Properties Limited (and Enterprise Inns plc (as Cash
Manager). 
This security incorporates a first fixed charge in favour of the Trustee (for itself and on trust for the Noteholders
and the other Issuer Secured Creditors) over Unique Pub Finance Company Plc’s right, title, interest and benefit,
present and future to all properties, cash, eligible investments and income generated by Unique Pub Properties
Limited. Enterprise Inns plc Annual Report 2005 65
Notes to the Accounts
at 30 September 2005
24 Loans (continued)
(b) Amounts (including overdrafts) fall due as follows:
Group Company
2005 2004 2005 2004
£m £m £m £m
In more than five years 2,824.8 2,781.6 1,191.0 1,197.0
In more than two years but not more than five years 391.5 492.9 217.6 394.5
In more than one year but not more than two years 83.2 234.7 65.4 61.1
In one year or less, or on demand (including overdraft) 25.7 26.9 9.9 7.7
Total 3,325.2 3,536.1 1,483.9 1,660.3
(c) Details of undrawn committed borrowing facilities available at 30 September are as follows:
2005 2004
Group and Company £m £m
Expiring in more than five years 190.0* 190.0
Expiring after two years but not more than five years 230.0† 110.0
Expiring in more than one year but not more than two years — 4.2
Expiring in one year or less — 10.9
420.0 315.1
* Represents a renewable committed liquidity facility in respect of the Unique securitisation.
† Represents the undrawn element of the syndicated bank facility.
Derivatives — other financial instruments
The Group’s principal financial instruments, other than derivatives, comprise bank loans, a debenture, secured
bonds and securitised bonds. The Group has entered into derivative transactions to manage the interest rate risks
arising from the Group’s operations and its sources of finance.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments
shall be undertaken.
(d) Interest rate hedging arrangements:
The Group is party to five swap agreements:
A swap of £550 million fixed at 6.66% until 1 June 2012.
A swap currently of £91 million fixed at 7.934% until 30 December 2012.
A swap currently of £103 million fixed at 7.873% until 30 December 2012.
A swap currently of £103 million fixed at 7.873% until 30 December 2012.
A swap currently of £90 million fixed at 6.079% until 30 September 2013. 66 Enterprise Inns plc Annual Report 2005
Notes to the Accounts
at 30 September 2005
25 Share capital 
2005 2004
Authorised: No. £m No. £m
Ordinary Shares of 5p each 500,000,000 25.0 500,000,000 25.0
2005 2004
Allotted, called up and fully paid: No. £m No. £m
Ordinary Shares of 5p each 349,505,390 17.5 349,505,390 17.5
At 30 September 2005, the Group owned 9,248,445 of its own shares with a nominal value of £0.5m and a
market value of £77.9m (2004 — 6,332,846 shares, nominal value £0.3m, market value £36.1m). These shares are
held by the Employee Benefit Trust and Enterprise Inns Quest Trustees Limited and are for use in satisfying
awards made under the Enterprise Inns Incentive Plans and other share option schemes. 
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 2005 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 6,374 Between 18/12/00 and 18/12/07 0.96
Executive Share Option Scheme 7,648 Between 17/12/01 and 17/12/08 1.40 
Executive Share Option Scheme 23,924 Between 14/12/02 and 14/12/09 1.63
Executive Share Option Scheme 85,922 Between 18/12/03 and 18/12/10 1.70
Executive Share Option Scheme 322,603 Between 11/12/04 and 11/12/11 2.58
Executive Share Option Scheme 1,700,000 Between 16/12/05 and 16/12/12 2.81
Executive Share Option Scheme 999,000 Between 08/12/06 and 08/12/13 4.90
Executive Share Option Scheme 843,500 Between 07/12/07 and 07/12/14 7.02
Executive Share Option Scheme 340,000 Between 18/05/08 and 18/05/15 7.57
Savings Related Share Option Scheme 18,732 Between 01/02/06 and 01/08/06 1.02
Savings Related Share Option Scheme 31,308 Between 01/02/07 and 01/08/07 1.41
Savings Related Share Option Scheme 189,994 Between 01/02/06 and 01/08/08 1.25
Savings Related Share Option Scheme 111,024 Between 01/02/07 and 01/08/09 2.10
Savings Related Share Option Scheme 281,892 Between 01/02/08 and 01/08/10 2.32
Savings Related Share Option Scheme 147,985 Between 01/02/09 and 01/08/11 3.73
Savings Related Share Option Scheme 134,201 Between 01/02/10 and 01/08/12 5.45
The SAYE scheme is Inland Revenue approved and the Company has taken advantage of the exemption from
applying UITF38 to this scheme.
Directors’ contingent rights to shares are shown in the Directors’ Remuneration Report on pages 27 to 35. Enterprise Inns plc Annual Report 2005 67
Notes to the Accounts
at 30 September 2005
26 Reserves
Share Re- Capital Profit
premium valuation redemption Merger Other and loss
account reserve reserve reserve reserve* account
Group £m £m £m £m £m £m
At 1 October 2004 485.5 541.8 7.6 77.0 (28.1) 252.3
Transfer of realised revaluation surplus — 0.2 — — — (0.2)
Retained profit for the year ————— 150.4
Surplus on revaluation of estate — 268.0 ————
Purchase of shares to be held in trust ———— (37.6) — 
Share-based expense recognised in operating profit — ———— 2.3
Directors’ entitlements exercised in the year ———— 3.3 (3.3)
Employee entitlements exercised in the year ———— 6.8 (3.5)
Actuarial gain recognised in the defined benefit
pension scheme of subsidiary, net of deferred tax ————— 0.9
At 30 September 2005 485.5 810.0 7.6 77.0 (55.6) 398.9
* Other reserve comprises own shares held by employee share trusts.
The cumulative amount of goodwill written off to reserves at 30 September is as follows:
2005 2004
£m £m
Positive goodwill 9.8 9.8
Negative goodwill (7.4) (7.4)
2.4 2.4
Share Re- Capital Profit
premium valuation redemption Other and loss
account reserve reserve reserve* account
Company £m £m £m £m £m
At 1 October 2004 485.5 483.4 7.6 (28.1) 208.3
Transfer of realised revaluation surplus — (2.2) — — 2.2
Retained profit for the year ———— 110.8
Surplus on revaluation of estate — 140.1 — — —
Purchase of shares to be held in trust — — — (37.6) — 
Share-based expense recognised in operating profit — — — — 2.3
Directors’ entitlements exercised in the year — — — 3.3 (3.3)
Employee entitlements exercised in the year — — — 6.8 (3.5)
At 30 September 2005 485.5 621.3 7.6 (55.6) 316.8
* Other reserve comprises own shares held by employee share trusts.  68 Enterprise Inns plc Annual Report 2005
Notes to the Accounts
at 30 September 2005
27 Reconciliation of shareholders’ funds
2005 2004
£m £m
Total recognised gains and losses 480.7 284.9
Dividends (61.4) (41.2)
419.3 243.7
New share capital subscribed — 0.5
Premium on issue of shares — 50.7
Consideration paid for purchase of own shares (37.6) (24.3)
Proceeds received from exercise of employee share options 3.3 —
Share-based expense recognised in operating profit 2.3 1.6
Net addition to shareholders’ funds 387.3 272.2
Opening shareholders funds 1,353.6 1,081.4
Closing shareholders’ funds 1,740.9 1,353.6
28 Notes to the statement of cash flows
At Other At
1 October non-cash 30 September
2004 Cash flow movements 2005
Analysis of net debt £m £m £m £m
Cash at bank and in hand 146.7 (51.2) — 95.5
Cash 146.7 (51.2) — 95.5
Short-term loans (26.9) — 1.2 (25.7)
Long-term loans (3,509.2) 202.1 7.6 (3,299.5)
(3,389.4) 150.9 8.8 (3,229.7)
29 Capital commitments
Amounts contracted for but not provided in the accounts amounted to £9.0m (2004 — £12.8m) for the Group and
£5.0m (2004 — £7.6m) for the Company. 
30 Other financial commitments
At 30 September 2005 the Group and Company had annual commitments under non-cancellable operating leases
as set out below:
Land and Buildings
Group Company
2005 2004 2005 2004
£m £m £m £m
Operating leases which expire:
within one year 0.1 0.1 — —
within two to five years 0.5 0.6 0.4 0.5
in over five years 4.6 4.6 3.8 4.1
5.2 5.3 4.2 4.6 Enterprise Inns plc Annual Report 2005 69
Report of the Auditors
We have audited the Group’s financial statements for the year ended 30 September 2005 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. The directors are also responsible for preparing the
Directors’ Remuneration Report.
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 nine provisions
of the 2003 FRC Combined Code specified for our review by the Listing Rules of the Financial Services Authority, 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 Directors’ Report, Directors’ Report, Corporate Responsibility 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. 70 Enterprise Inns plc Annual Report 2005
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 2005 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
22 November 2005  Enterprise Inns plc Annual Report 2005 71
Five Year Record
Group Profit and Loss Accounts
Year ended 30 September
2005 2004 2003 2002 2001
£m £m £m £m £m
Turnover 919.9 712.7 480.6 368.9 245.4
Operating Profit 520.2 368.9 254.2 178.7 84.8
Profit on ordinary activities before tax 303.9 213.2 173.1 92.3 40.7
Profit after tax 211.8 147.5 124.5 64.1 26.3
Profit retained for the period 150.4 106.3 95.5 43.6 15.2
Adjusted earnings per share (pence)* 63.2 47.5 36.1 29.5 19.8
* Excludes exceptional items, goodwill amortisation and a one-off tax credit which occurred in 2003.
Group Balance Sheets 
Fixed assets 5,292.5 5,011.6 2,692.4 2,386.8 1,323.3
Current assets 184.0 237.0 47.7 59.9 62.4
Creditors due within one year (331.1) (309.4) (306.4) (223.6) (137.2)
Total assets less current liabilities 5,145.4 4,939.2 2,433.7 2,223.1 1,248.5
Creditors due after more than one year* (3,404.5) (3,585.6) (1,352.3) (1,531.0) (926.0)
Net assets 1,740.9 1,353.6 1,081.4 692.1 322.5
* Includes provisions for liabilities and charges and pension liability.  72 Enterprise Inns plc Annual Report 2005
Analysis of Ordinary Shareholders
Number of Shares
Range shareholders % held %
1-1000 812 32.2 389,636 0.1
1001-10,000 975 38.7 3,357,625 1.0
10,001-50,000 323 12.8 7,625,299 2.2
50,001-100,000 101 4.0 7,166,820 2.1
100,001- 150,000 64 2.6 7,938,122 2.2
150,001-500,000 127 5.0 36,301,051 10.4
500,001-1,000,000 49 2.0 35,738,812 10.2
1,000,001-5,000,000 52 2.1 101,751,715 29.1
5,000,001 and over 16 0.6 149,236,310 42.7
2,519 100.0 349,505,390 100.0
Financial Calendar
2005
Preliminary announcement of annual results to 30 September 2005 22 November
Final dividend — ordinary shares: ex dividend date 28 December 
Final dividend — ordinary shares: record date 30 December
2006
Annual General Meeting 19 January
Final dividend — ordinary shares: payment date 23 January
IFRS announcement — opening IFRS balance sheet and 2005 restated results April
Announcement of interim results May
Interim dividend — ordinary shares: record date June
Interim dividend — ordinary shares: payment date July
Preliminary announcement of annual results to 30 September 2006 November Enterprise Inns plc Annual Report 2005 73
Shareholder Information
Shareholder Enquiries
Our registrars, Computershare Investor Services PLC, operate a dedicated telephone enquiry line for shareholders who
have routine enquiries. The telephone number is 0870 703 6297.
Electronic Communications
The registrars also provide an online service that enables shareholders to access details of their Enterprise Inns
shareholdings and to register to receive communications such as reports and accounts electronically. Details can be
found at www-uk.computershare.com/investor.
Dividend Payments
Dividends can be paid direct to UK bank or building society accounts using the BACS system so that your dividend can
be paid into your account on the same day the Company makes payment. A tax voucher will still be provided and sent
to shareholders by post. Shareholders who wish to arrange direct payment using this method should telephone the
registrars on 0870 703 6297. 74 Enterprise Inns plc Annual Report 2005
Notice of Meeting
The 2006 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 
19 January 2006 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 2005 and
the auditors’ report on the accounts.
2. To declare a final dividend.
3. To reappoint Mr H V Reid as a director.
4. To reappoint Mr G W Harrison as a director.
5. To reappoint Ernst & Young LLP as auditors and to
authorise the directors to fix the remuneration of the
auditors.
6. To approve the directors’ remuneration report for the
year ended 30 September 2005.
7. 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 £5,764,488.  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 2007, 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.
SPECIAL RESOLUTIONS
To consider and, if thought fit, to pass the following
resolutions which will be proposed as special
resolutions:
8. THAT, subject to the passing of resolution 7, 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 7 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 Enterprise Inns plc Annual Report 2005 75
Enterprise Inns Annual Report 2003 75
Notice of Meeting 
authority conferred on the directors by resolution 7
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.
9. 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
51,850,998; 
(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. 
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 2007, 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. 
10. THAT the articles of association a copy of which is
produced to the meeting and signed by the
chairman, for the purposes of identification, be
adopted as the articles of association of the
Company in substitution for and to the exclusion of
the existing articles of association of the Company.
The directors believe that the proposals in
resolutions 1 to 10 are in the best interests of
shareholders as a whole and they unanimously
recommend that you vote in favour of all the
resolutions.
On behalf of the Board Registered office:
3 Monkspath Hall Road
D C George Solihull
Company Secretary West Midlands, B90 4SJ
22 November 2005 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 703
6297 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. 76 Enterprise Inns plc Annual Report 2005
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
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 any 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 no later than 6.00 p.m. on
17 January 2006 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 17 January 2006 shall be disregarded
in determining the rights of any person to attend or
vote 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
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/voting/etp (you will
need your unique PIN and Shareholder Reference
Number printed on your personalised Form of Proxy),
in each case so that it is received no later than
11.00 a.m. on 17 January 2006.
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 any 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
Notice of Meeting  Enterprise Inns plc Annual Report 2005 77
Notice of Meeting 
6. Copies of the directors’ service contracts, the
directors’ remuneration report, the biographical
information of the directors seeking reappointment
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.
7. Copies of the Company’s existing articles of
association and the articles of association proposed
to be adopted pursuant to resolution 10 are
available for inspection at the Company’s registered
office and will also be available for inspection at the
offices of CMS Cameron McKenna LLP, Mitre House,
160 Aldersgate Street, London EC1A 4DD, in each
case during normal business hours on any weekday
(excluding Saturdays, Sundays and public holidays)
until the end of the Annual General Meeting.
8. If you have sold or otherwise transferred all your
ordinary shares in Enterprise Inns plc, you should
immediately send this document, together with the
accompanying form of proxy, to the purchaser or
transferee or to the stockbroker, bank or other
person through whom the sale or transfer was
effected for transmission to the purchaser or
transferee. 78 Enterprise Inns plc Annual Report 2005
Explanatory notes to the Notice of
Annual General Meeting
The notice of the Annual General Meeting of the
Company to be held on Thursday, 19 January 2006
is set out on pages 74 to 77 of this document. 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 7 are ordinary resolutions. These
resolutions will be passed if more than 50% 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 5.6 pence (net) has already been
paid in respect of the 2004/2005 financial year. The
directors are recommending a final dividend of 12.4
pence (net) per ordinary share of 5 pence, payable on 
23 January 2006 to holders on the register as at 
6.00 p.m. on 30 December 2005. The final dividend will
not be paid without shareholder approval.
Resolutions 3 and 4 – Reappointment of Mr H V
Reid and Mr G W Harrison 
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
H V Reid and Mr G W Harrison are retiring and seeking
reappointment. Biographical information for Mr H V Reid
and Mr G W Harrison and details of why the Board
believes they should be re-elected are included in the
directors’ report in the annual report and accounts.
Resolution 5 – 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, further information on which can
be found in the annual report and accounts. After
considering relevant information the Audit Committee
recommended to the Board of directors the
reappointment of Ernst & Young LLP.
Resolution 6 – 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 7 – 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 up
to an aggregate nominal value of £5,764,488 (up to
115,289.779 new ordinary shares of 5 pence each),
which is equal to approximately one-third (33.33%) of
the issued share capital of the Company (excluding
treasury shares) as at 7 December 2005, being the latest
practicable date prior to the publication of the notice. At
the date of this notice the Company held no treasury
shares. As at 7 December 2005, being the latest
practicable date prior to the publication of the notice,
the Company had 349,505,390 shares in issue and held
3,601,462 treasury shares, which is equal to
approximately 1.04% of the issued share capital of the
Company (excluding treasury shares) as at that date. 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 2007. 
Passing this resolution will continue the directors’
flexibility to act in the best interests of shareholders, when
opportunities arise, by issuing new shares. The directors
currently have no intention of issuing new shares. Enterprise Inns plc Annual Report 2005 79
Explanatory notes to the Notice of
Annual General Meeting 
Resolutions 8, 9 and 10 are special resolutions.
These resolutions will be passed if not less than
75% of the votes cast for and against are in favour.
Resolution 8 – 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% of the aggregate nominal value of the issued share
capital of the Company as at 7 December 2005, being
the latest practicable date prior to the publication of the
notice (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 7. 
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 9 – 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% of the Company’s issued
share capital (excluding treasury shares) as at
7 December 2005, being the latest practicable date prior
to the publication of the notice. 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. 
On 22 November 2005 (the date of the notice) the
Company announced its intention to commence a
rolling share buy-back programme. The directors intend
to use the authority granted pursuant to this resolution
in pursuance of the share buy-back programme. Further
details of the share buy-back programme are set out in
the Chairman’s Statement in the annual report and
accounts.
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% 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.
As at 7 December 2005, being the latest practicable
date prior to the publication of the notice, options were
outstanding over 5,226,740 ordinary shares of 5 pence
each in the Company representing approximately 1.51%
of the issued share capital of the Company at that date.
If the proposed market purchase authority were used in
full, shares over which options were outstanding would,
as at 7 December 2005, being the latest practicable
date prior to the publication of the notice, represent
approximately 1.78% of the Company’s adjusted issued
share capital (excluding treasury shares) at that date. 
Resolution 10 – Adoption by the Company of the
new articles of association
To ensure that the Company’s constitutional documents 80 Enterprise Inns plc Annual Report 2005
Explanatory notes to the Notice of
Annual General Meeting
comply with recent developments in company law and
best practice and that the references in them remain
current, the directors consider it necessary to update the
Company’s articles of association. The existing articles of
association were adopted on 22 January 2004 and have
not been amended since that date.
The principal changes proposed to the Company’s
articles of association are to the provisions relating to
the indemnification of directors and other officers (but
without substantively affecting the existing position in
relation to its auditors) following recent amendments to
the Companies Act 1985. 
If approved, the proposed changes would allow the
Company to indemnify the directors (or any director of
an associated company) in respect of proceedings
brought by third parties, covering both legal costs and
the financial costs of any adverse judgment. This would
not include the legal costs of the unsuccessful defence
of criminal proceedings, fines imposed in criminal
proceedings or penalties imposed by regulatory bodies
such as the Financial Services Authority. The Company
would also be permitted to pay the director’s defence
costs as they are incurred, even if the action is brought
by the Company itself. If the director’s defence is
unsuccessful, the director will still be liable to pay any
damages awarded and to repay defence costs (except
where the proceedings have been brought by a third
party and the Company chooses to indemnify the
director). Indemnities granted to the auditors would be
subject to the same restrictions as at present. There
would be no restrictions on any indemnity granted to
other officers of the Company other than its directors (or
the directors of an associated company.
The proposed changes also amend and update the
provisions dealing with treasury shares to clarify them in
line with best practice.
A copy of the proposed Articles of Association
incorporating these changes is available for inspection
as stated in note 7 to the Notice of Meeting on page 77
of this document. The White Hart
During the year there were many
examples of Enterprise licensees who
were recognised for the exceptional
skills they demonstrate and the quality
of the businesses they operate. Here is
just a sample of them:
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 Responsibility 17
Corporate Governance 21
Directors’ Remuneration Report 27
Group Profit and Loss Account 36
Group Statement of Total Recognised Gains And Losses 37
Note of Historical Cost Profits and Losses 37
Group Balance Sheet 38
Balance Sheet 39
Group Statement of Cash Flows 40
Notes to the Accounts 41
Report of the Auditors 69
Five Year Record 71
Analysis of Shareholders 72
Financial Calendar 72
Shareholder Information 73
Notice of Meeting 74
Explanatory notes to the Notice of AGM 78
Contents
The Enterprise Inns Team
WHITE HART, WINCHCOMBE
Morning Advertiser Best Pub – WINNER
The 16th century White Hart, run by Nicole and David Burr, was named
as the Morning Advertiser’s Pub of the Year for 2005 due to the high
quality offering and sheer originality demonstrated at the
Gloucestershire pub. Also winners of the Innovation of the Year Award,
the Burrs specialise in traditional Scandinavian food and sell a range of
Swedish goods, including antique furniture and textiles.
FARMERS ARMS, HESKIN, CHORLEY 
Morning Advertiser Best Village Pub – WINNER
Three generations of Malcolm Rothwell’s family have
been involved at the Farmers Arms over a period of
17 years, offering fine food, a wide selection of beers
and eight letting bedrooms. Their track record was
recognised when they won the overall Village Pub
category in the Morning Advertiser’s Best Pub
Awards 2005.  
Alford Arms
Farmers Arms
VINE TREE, MONMOUTH 
Morning Advertiser Social Responsibility Award – WINNER
Berni Miles, licensee at the Vine Tree and Monmouthshire Pubwatch
chairman, collected the Morning Advertiser’s PubWatch Award for Social
Responsibility at the 2005 Best Pub Awards, as well as winning Most
Responsible Tenant or Licensee at the recent Responsible Drink Retailing
Industry Awards. Both awards were made in recognition of his group’s
tough stance and zero-tolerance approach to responsible drinks retailing.
Vine Tree
WINFORD ARMS, BRISTOL
Bristol Pub of the Year – WINNER
Licensee Steve Gunter’s pub was selected from venues in and around
Bristol as the locals’ favourite. The pub, winner of the Bristol Evening
Post Pub of the Year Award for 2005, was chosen as it demonstrates
all of the elements that are great about a pub; "traditional hearty
food, top drinks, comfort, friendliness and value for money". 
Winford Arms
STATION INN, DERBY
Morning Advertiser Responsible
Retailing Awards – FINALIST
David Lalor, short-listed for the
2005 Morning Advertiser
Responsible Drinking Retailing
Award for his work and initiatives
within Derby’s pub industry, has
been lessee at the Station Inn for
the last 20 years. His nomination
by the Derby Crime Reduction
Partnership, Pubwatch and CAMRA
recognised his responsible and
proactive approach to licensed
trade, both within his pub and
throughout the local community.
Station Inn
ALFORD ARMS, HEMEL HEMPSTEAD 
Publican Catering Pub of the Year – WINNER
Becky and David Salisbury, licensees at the Alford Arms for the last six years,
have developed a consistently high quality food offer, whilst maintaining the
values of a traditional pub. They received The Publican Catering Pub of the
Year Award 2005, as well as being named Hertfordshire Dining Pub of the Year
for the last three years in the Good Pub Guide.
Left to right: David George, Finance Director;  
Gordon Harrison, Operations Director; 
Ted Tuppen, Chief Executive; 
Simon Townsend, Customer Services Director; 
Andrew Clifford, Strategic Planning and Investment Manager. 
College Arms
COLLEGE ARMS,
LOWER QUINTON
National Chef of
the Year – WINNER
Steve Love, joint licensee and
Chef Patron of the College
Arms, reopened the 500-year
old Lower Quinton pub recently
with wife and partner Claire,
following a substantial
refurbishment. Steve, a former
Roux scholar, was named as the
Craft Guild of Chefs National
Chef of the Year 2004 – 2006. 
FULHAM MITRE, LONDON
Morning Advertiser Best 
Tenanted or Leased Pub – WINNER
Louis Amato’s pub was named as the best Tenanted or Leased
Pub in the UK in the Morning Advertiser’s Best Pub Awards
2005. The judges praised Louis for ‘having the foresight to
realise the potential of The Fulham Mitre and for turning his
ideas into reality . . . a gem of a pub’.
Fulham Mitre
Front cover pictures (left to right)
King’s Head, Redditch
Navigation, Lapworth
Livesey Arms, Ludborough
Back cover pictures (left to right)
Mumbai Bluu, Leamington Spa
Horse and Jockey, Goole
Fleur de Lys, St. Albans
Printed by Jones & Palmer Limited, Birmingham. tel: (0121) 236 9007 Enterprise Inns plc Annual Report and Accounts 2005
Enterprise Inns plc
Annual Report And Accounts 2005
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