Supermarkets blamed for 'lawlessness'
Pubs N Bars, which operates around 100 venues, has blamed supermarket booze for Britain's 'lawlessness'.
The company, announcing its interim results for the six months to June 30, said the country would never be free of binge-drinking and lawlessness while supermarkets were allowed to sell cut price booze.
A statement released this morning read: "Our major competition remains the supermarket groups which continue to sell alcoholic drinks at cut prices. Until this ceases, our communities will suffer from the effects of binge drinking and its accompanying lawlessness."
Our major competition remains the supermarket groups which continue to sell alcoholic drinks at cut prices. Until this ceases, our communities will suffer from the effects of binge drinking and its accompanying lawlessnessA statement.
The company which has 98 pubs and manages a further eleven on behalf of others, also bucked the recent pubco trend by announcing that the smoking has had an effect on trade.
A statement to shareholders read: "The ban on smoking in all enclosed public places took effect from 1st July 2007.
"Your directors believe that it has initially had a negative effect on turnover, but it is difficult to quantify as last year the weather was significantly better.
"Turnover has decreased by approximately 4% since the beginning of July on a like-for-like basis, however it is impossible to distinguish between the impact of the smoking ban and the wettest summer since records began which, in itself, has caused a substantial increase in holidays taken abroad rather than in the UK.
"Having introduced external areas for accommodating smokers, we believe that any lost customers will begin to return over time once they have become used to the situation. Additionally, new customers who historically have not frequented pubs because of the smoke-filled environment, now have the opportunity to use our establishments."
Despite this the statement reported a 'satisfactory' start to the year and showed a profit before tax of £541,819 (2006: £548,005) which was achieved on a turnover of £8,868,088 (2006: £7,668,789).
Operating profit increased by £108,406 to £1,327,835 achieving an operating profit percentage of 14.97% (2006: 15.90%).
Interest charges however increased by £111,758 to £807,614 (2006: £695,856) as a result of increased borrowings to finance acquisitions.
It said the increase in turnover was due to the acquisitions of Community Taverns Limited and Moorgate London Limited.
It added: "It is our intention to acquire further freehold pubs once the effect of the smoking ban on profitability can be assessed and we look forward to the remainder of the year with confidence.
