Gale sale boosts Heavitree Brewery's results

Selling its holding in George Gale to Fuller's last year helped hike Heavitree Brewery's annual pre-tax profits up to £2.6m.

The Devon brewer, which operates 100 pubs in the south west, sold its stake in its regional rival to Fuller's for £842,000, after the London brewer's agreed offer for Gales was accepted more than a year ago.

Heavitree's turnover for the year to October 31 2006 rose four per cent - £521,000 - to £13,412,000.

The group's operating profits grew by nearly a quarter to £1.9m, while its pre-tax profits, including the sale of its Gale holding, rose 49 per cent to £2.6m. Without this contribution, pre-tax profits rose 1.4 per cent to £1.8m.

The group said the cost of maintaining its properties had fallen by £235,000, thanks to the "strict financial controls" and "improved quality control" implemented by the team.

As in previous years, Heavitree chairman WP Tucker used the results announcement to take a swipe at what he sees as onerous regulation and red tape.

This year he took exception to changes to the rules governing the preparation and presentation of the group's accounts.

"It goes without saying that the new arrangements will be more expensive and time-consuming than the old.

"This applies equally to our auditors, and any extra costs incurred by them will have to be passed on to us. I find it difficult to see any benefit coming from this," he added.

At the release of last year's results, Tucker complaints concerned the costs of implementing the new licensing regulations, noting that "apart from the financial costs…there has been a heavy demand on the time of our senior management people [and] I find it hard, to say the least, to see any commensurate improvement or benefit to anyone resulting from the new system".