Investment boosts George Gale
Hampshire brewer George Gale says it has driven growth in a tough market through investement in it existing estate
Announcing full year results for 2004, Gales said an increase in pre-tax profits of 4.3 per cent to £4.3m. on turnover up 4.9% to £39.4m. marked a satisfactory performance.
Managing director Nigel Atkinson said: "Growth was achieved in a tough trading climate and without the benefit of new acquisitions, but in keeping with our long-term strategy, we are continuing to invest in our existing pubs to maximise their profitability and value."
Managed house turnover was up by 7.1 per cent and profit by 5.1 per cent across the year as a whole, with a stronger performance in the second half. Tenanted pubs performed ahead of expectations across the year, but both divisions saw a fall in machine income.
Gales, current holder of the Publican Awards Tenanted Estate of the Year title, operates around 110 pubs, roughly 70 of which are tenancies.
Mr Atkinson warned that increasing cost on the managed side, notably fuel costs and the minimum wage as well as the red tape burden, "mean that we are constantly reviewing the threshold at which we operate houses under management".
Beer volumes of Gales own ale brands increased by 1.8 per cent, with a 6.3 per cent increase in national accounts, where seasonal brews Swing Low and Robin's Revenge proved popular.
Mr Atkinson said: "We continue to invest in our existing estate and to seek new acquisitions to expand the business. Finding good quality pubs at realistic prices has again not been easy so we have concentrated, in the short term, on reducing borrowings in preparation for making acquisitions when suitable opportunities arise."
