Globe Pub Co says beer sales down 14 per cent

Globe Pub Company, the pub group owned by property tycoon Robert Tchenguiz, has reported year-on-year beer volumes down 14 per cent in the three months to September 1.

After reporting higher margins in the previous quarter to June 2 2007 - including cider volumes up 24 per cent - in its latest financial report the group said the 12 weeks to the beginning of September had presented it "with challenging trading conditions", with "a comparatively cold and wet early summer, with temperature and sunshine hours well below seasonal averages".

Turnover for the 445-pub estate, which is operated on Tchenguiz's behalf by Scottish & Newcastle Pub Enterprises, amounted to £13m, with beer sales accounting for £8.35m of that figure.

Earnings before interest, tax and depreciation (EBITDA) came in at £7.1m, 55.1 per cent of net sales.

The group said volume performance had been "impacted by trading conditions in June and July", although it argued that tough like-for-likes were a result of comparatives with trading during last year's World Cup football competition.

Margins were depressed, it added, due to a change in mix, with lager sales being the largest driver of the volume decline.

Like many companies reporting at this time, Globe noted that it was hard to isolate the relative effects of weather, World Cup and the smoking ban.

"We expect that the true effects of the smoking ban will not be clear until later in the year, when external smoking solutions will be put to the test in cold weather," it said.

The group said that approximately 75 per cent of its estate had outside space.