Everards, the Leicestershire brewer and retailer, saw a 2.3% reduction in turnover in its core pubs and beer sales business in the year to 27 September 2008. This led to a £518,000 drop in profits before tax and interest, while overall turnover was down 10% to £31.38m, writes Paul Charity.
Of the 10% reduction, 3.8% was attributable to a reduction in sales of development property by a subsidiary company from £1.32m in 2007 to £1m in 2008.
In addition, sales relating to low-margin contract brewing and kegging fell by £1.35m, reducing the group’s turn-over a further 3.9%. Overall group profits fell £1.64m to £3.89m in 2008, with the drop including the reduction in profits from sales of development property to £859,000 and costs of divesting itself of leasehold property amounting to £255,000.
A company statement said: “During 2008, the slowing economy in the UK has had an impact on customers’ discretionary spending, which, allied to the smoking ban, has created a challenging trading environment for some of our licensees.”
