Heavitree, the Devon-based tenanted pub operator, has reported a small decline in turnover for the year to 31 October 2013, due to a loss in rental income from two houses that were closed and then sold during the year.
Turnover for the group decreased by £37k (0.51%) to £7.2m in the year. However, a group operating profit stood at £1.34m, an 8.03% increase on the previous year.
It said that the year’s results had been buoyed by “strong controls of general costs and our good margins”.
The Full Quart at Hewish and The Bishop John de Grandisson at Bishopsteignton were sold in the year. This resulted in a net loss of £85k
It reported last year that it had converted the St. Loyes pub in Exeter into six apartments. Four have been marketed for sale and at the time of writing all have buyers who are soon to complete. The other two are being rented out.
A house near one of the group’s pubs in Honiton Clyst near Exeter has been converted into two cottages, and again both have been rented out.
The conversion of the Malsters Arms old skittle alley into a detached house was completed in July 2013.
It said that work had started on two further closed sites, with the Red Lion at Ashburton being converted into four apartments and a retail unit. The Country House Inn in Exeter has been demolished and tenders are being sought for the building of three houses which have been granted planning approval.
The group said: “The uncertainty surrounding the imposition of a statutory code of practice remains for Public House companies, with the Government having missed the most recent deadline of 8 January 2014 set by the Business Innovation and Skills Committee (BISC) to reveal its intentions towards intervening in the tenanted pub company model. We have already had our own Code of Practice ratified by the British Beer and Pub Association.
“The company believes that any upturn in the economy will be slow to filter through to boost customer confidence and expects that trading conditions will remain difficult in the coming year. This year’s set of results have been buoyed by strong controls of general costs and our good margins.”
