Turnover takes a tumble

Newcomers to the trade are investing to accumulate far more than their more experienced counterparts as licensees struggle to halt sliding turnover figures in difficult trading times

Just over three-quarters of owners have invested some money in their business this year, with this being more common in country than in community pubs. Those who have been in a pub for two years or less are the most likely to have invested, with 84% doing so compared to 75% for the remaining sample.

On average, investments are worth nearly £26,400, and ranged from £500 to £500,000, with three quarters investing less than £30,000.

The average amount invested varies considerably, by both pub type and by how long licensees have been there with the newest freetraders investing significantly more than older ones. In fact the highest average level of investment is by those who have been in the pub between one and two years, with an average of more than £100,000.

The average turnover in the past 12 months was approximately £289,000. This indicates that there has been a drop of around 8% on last year, with significantly more responses in the lowest turnover banding in 2005.

Turnover varies widely depending on the type of outlet, with town-centre pubs at around £400,000 compared to community pubs on £220,000 and the most recent entrants to the trade having a turnover of £214,000 compared to the longest tenants at £386,000.

Turnover and barrelage are still closely related, with those selling more than 500 barrels having a turnover four times that of pubs reaching 100 barrels. The majority (61%) of respondents said that their turnover had increased over the previous year, while 13% said it was worse, which reflects a similar trend in 2004.