Trust Inns, the c600-strong pub business owned by leisure magnate Trevor Hemmings, has reported a sharp fall in pre-tax profits after paying higher interest payments and incurring a £1.9m impairment charge following a £6m property value write-down. Pre-tax profits in the year to 31 March were £2.1m (2011: £9.1m) on 2011 on turnover up 20% to £43.2m. Operating profit fell 18.4% to £11.7m. The company, which is led by Lynne D’Arcy, stated: “Underlying trading performance during the year was satisfactory, but market conditions have continued to be challenging.” Trust Inns carried out a valuation of its land and buildings in March 2012, which reduced the overall carrying value of its fixed assets by £6m. Interest payments on bank loans and overdrafts increased from £5.6m to £7.7m. Meanwhile, capital expenditure in the year fell from £3.3m to £2.3m. Staff costs increased from £3.46m to £3.52m and average employee numbers fell from 190 to 170. The firm said it has a “sound financial base and sufficient financial resources to meet the requirements of the business”. The company said its performance is monitored monthly against its budget “to identify significant variances and to enable remedial action to be identified”. Directors did not recommend payment of a dividend in the period.