Heavitree, the Devon-based brewer and pub operator, has revealed operating losses of £130,000 and said that a strategic review was 'ongoing'. It said last month it had called on the services of Ernst & Young LLP to conduct a review after warning earlier in the year that it was not “immune” to the pressures of the industry. After its annual general meeting today, Heavitree said: “The economic squeeze has combined with these pressures to affect adversely and significantly the company's performance for the half year.” AIM-listed Heavitree, which owns 76 tenanted pubs, said it had made an operating loss of £130,000 for the six-month period to April 30 against profits of £784,000 last time. Sales fell 2.8% to £6.1m. It also revealed that Heavitree Inns – its managed house subsidiary – also made an operating loss of £99,000 – compared with a profit of £148,300 for the same time period last year. Heavitree's pre-tax profit for the half year to April 30 was £185,000 – after interest and the sale of three properties. Chairman Nicolas Tucker said: “What was anticipated to be a difficult and challenging year has so far proved to be that and more. “The strategic review is ongoing and is being undertaken at a time when the company has a strong balance sheet. The outcome will help the board to decide on the best course of action to follow during these uncertain trading and economic times.”