Black Sheep Brewery reduced its losses in the year to the end of March 2014 as it achieved cost savings of more than £500,000, and pledged to return to profitability in 2015.
The North Yorkshire-based company reported a pre-tax loss of £182,000 (2013: £740,000) on turnover down 2.1% to £18.4m.
Managing director Rob Theakston said: “We have seen some significant changes in the overall sales mix, as the off-trade has grown its share within the business to 32% from 26% in the previous year. The on-trade remains a challenge and particularly for cask Best Bitter, but we have countered that with a solid seasonal cask range of beers, produced as a result of the five barrel micro plant that we installed in 2013.”
The company also launched Black Sheep keg beer to complement cask sales in the on-trade.
Rob Theakston paid tribute to “an incredible effort from everyone in the business” for delivering “an annual overhead saving of just over £500,000”.
Chairman Paul Theakston added: “I am glad to be able to say that after three months of trading in the current year, we are on track to deliver our planned return to profitability. [However] we do not feel that it is yet time to resume a dividend payment.”
The company reported that its own “duty burden” was £7.5m in the financial year, and called on the government to evolve the Progressive Beer Duty regime “to allow all brewers, both large and small, to benefit in some small way from this tax relief that is currently distorting the market”.
