The chief executive of Enterprise Inns, Britain's second-biggest pub company, said today that trading conditions in the past six months had been the worst he could remember.

Ted Tuppen, who founded the tenanted pub group in 1991, said that the smoking ban, the consumer spending downturn and rising costs had combined to ensure "the worst six months the industry has probably ever experienced".

He said that Enterprise, which owns almost 7,800 pubs, had spent about £2.5 million helping its tenants through either short-term rent concessions or beer discounts.

Mr Tuppen said that about 500 of its tenants were receiving help from the company, up from about 300 last year, while the number of pubs that were closed had increased slightly to almost 200, including about 70 that were up for sale.

But the Enterprise boss said he remained optimistic about the group's prospects given the quality of its pub estate and the resilience of the tenanted and leased business model.

In the half-year to the end of March, Enterprise managed to maintain earnings before interest, tax, depreciation and amortisation at £256 million.

Pre-tax profits before exceptionals fell by 11 per cent to £132 million, from turnover flat at £438 million, and adjusted earnings per share rose by 5 per cent to 19.3p. The interim dividend is 12 per cent higher at 5.8p.

Beer volumes within the group's estate are understood to have fallen by about 6-7 per cent compared to a wider market decline of at least 9 per cent.

The company acquired 40 pubs during the period at a total cost of £32 million, and sold off 18 underperforming pubs and surplus land for £12 million.

Mr Tuppen said that the company's mooted conversion to a tax-efficient real estate investment trust (Reit) could take place as early as the autumn although there were "a lot of boxes to be ticked" before it was able to make a final decision.

He said that a successful conversion to Reit status could put pressure on other companies to follow suit, although those with managed estates, such as Punch Taverns, would have to demerge or sell their managed pubs to qualify.

He said Reit status would give Enterprise the scope to "at least double the dividend payout".

Shares of Enterprise fell by 6.5p to 480.75p.

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