Heavitree Brewery, the Devon-based brewer and pub operator, has reported a 13% fall in pre-tax profit during the six months to 30 April 2011 compared to the previous year, with turnover declining by 0.5% to £3.405m. Pre-tax profit for the six months stood at £450,000 down from £519,000 in 2010, while operating profit fell from £583,000 to £558,000. The group said that its revenue recovered well during the period after the adverse impact of the harsh weather over the festive period and that it had enjoyed a “steady performance” during the first six months of its current trading year. The company said that as a means of offering support to its tenants, it did not pass on suppliers' New Year price increase and the duty increase, announced in the Chancellor's March Budget until mid-April. It said that its gross margins were consequently diminished over this period and that it expected this to have had an effect on turnover for the first half of the year. Nicholas Tucker, chairman, said: “Trading conditions remain testing across all sectors of the wider economy and the pub industry must fight wisely for its share of the retail spend against this backdrop. We believe the continued support we offer to our tenants together with a focussed and time-managed investment in our estate can only help in this regard. The success of our pubs has always been and will continue to be mutually beneficial to both the company and our tenants.” The company said it would pay an interim dividend of 3.5p per ordinary share and 'A' limited voting ordinary share (2010 - 3.5p) on 5 August.