Shares in Enterprise Inns plunged on the FTSE 250 in afternoon trading after the pub group reported a fall in profits in the full year ended 30 September.

The group said that EBITDA before exceptional items dropped from £450 million last year to £405 million this year. Average net income per pub also fell from £65 thousand to £63.9 thousand.

During the year the group made an exceptional profit of £52 million from disposals worth £270 million. The disposals helped Enterprise Inns to cut its net debt by £374 million.

Profit before tax and exceptional items dropped from £208 million to £175 million, while profit after tax rose from £6 million to £26 million.

Ted Tuppen, Chief Executive of Enterprise Inns, said, "We have delivered creditable results, hard won stability and genuine operational improvements in difficult circumstances. The economic environment is set to remain challenging and we do not underestimate the impact of the Government's austerity measures and fiscal tightening which will affect both our licensees and their customers.

"However, the past year has demonstrated the resilience of the best pub operators in the industry and we believe that the profile of our estate, combined with the professionalism and flair of our licensees leaves us well placed to face whatever challenges the year ahead may bring. We remain confident that the business is in a sound position to deliver positive returns to shareholders over the medium term, including the resumption of dividend payments."

By 12:50 shares in Enterprise Inns were down 11.31 per cent on the FTSE 250 to 97.20 pence per share.