Following the revelation of significant pre-tax losses, West Midlands pub company Innobox said it would press ahead with plans to launch a new hotel and health club in an old Shropshire mansion. Innobox revealed that at the end of April, it amassed a pre-tax loss of £993,335, claiming that: "Trading conditions during the year have been very tough and volumes did not recover as usual after the traditionally quiet post Christmas period." Despite this, the company will pursue its plan to convert Fishmore Hall, on the outskirts of Ludlow, Shropshire, into a 26-room hotel, in two phases. The first is to be the completion of 15 rooms, due to be finished by summer 2006. Innobox will also convert the hall’s outbuildings into manager’s accommodation, and its gym into a health club. Phase two will begin once the business is firmly established, Innobox said. Formerly in the aerospace packaging business, Innobox entered the pub industry in 2003. Having finally divested of its old packaging interests, the company now has as its mission "to build a group in the licensed trade sector", primarily by renovating and running underperforming pubs and small hotels. So far, it has acquired a majority interest in Derbyshire’s Moss Cottage Hotels and the Moss Cottage pub, and I M Hotels, which owns Leominster’s Royal Oak Hotel. Innobox also owns outright the Three Tuns Inn in Pettistree, Suffolk. However, it is to sell Moss Cottage and the Three Tuns, the proceeds of which will go to the location of new development opportunities. It will also develop two mews-style houses adjoining the Royal Oak.