Barracuda Pub Company, the managed operator led by Mark McQuater, has reported a loss for its most recent year of £18.6m after write-downs and other charges, writes Paul Charity.
The company, which has a portfolio of 74 freeholds and 140 leasehold sites, has reported a turnover of £153m for the year to 25 September 2010 and an operating profit of £5.1m.
But the company reports that it reviewed its estate and identified freehold and leasehold properties for exit. There was an impairment charge of £6.8m and a further provision against onerous leases of £4.5m.
It said many items in its profit-and-loss account are non-cash items, including a 20% interest charge, or £2.1m, it owes on loans from a consortium of banks.
A statement from Companies House said: “The pub industry has continued to face considerable challenges due to the combination of economic recession, increasing duty charges from the Government and severe price competition from the major supermarket chains.
“This has impacted heavily on pub numbers with a considerable number closing in recent years — most of these are tenanted units.
“As a managed pub operator with larger-than-average pubs with the ability to grow food sales, we believe that Barracuda is well-placed to cope with the pressures.”
