Wellington Pub Company, the 850-strong pub estate owned by the Reuben Brothers and managed by Criterion Asset Management, made a loss of £5.7m, according to its latest accounts.
Turnover slipped from £31.2m to £30.3m in the year ending 31 March 2010. It still paid an interim dividend of £5.5m.
The company bought 13 pubs during the period and disposed of 33 others at a loss of £16m.
The accounts said: "This fits in with the directors' strategy of under performing properties within the portfolio and to acquire better performing and income-generating pubs."