Hop Back Brewery, the Wiltshire brewer, has cited poor national on-trade sales as the main reason for falling into the red in the year to 30 September 2013.
The company reported a pre-tax loss of £95,507 against a pre-tax profit of £119,731 the year before on turnover down 9.9% to £3.6m. It also reported an operating loss of £96,088 (2012: operating profit of £121,088).
Hop Back said it was “disappointed” to report a loss. “However, the company has maintained a positive cash flow and has paid off its bank loans, while at present having no overdraft.
“The principal reason for these results is poor national on-trade sales. Pubs are not only closing but many more are being run as restaurants. At the same time, there are more and more brewery entrants into a diminishing market.
“As a whole, however, our community pubs have remained buoyant and have stayed wet-led, thus contributing to brewery sales. We are currently looking closely at our costs having carried out a strategic review into the structure of our business.
“We are confident that we can meet the challenges of the fast moving changes in trading patterns and so recommend a 4p dividend.”
