St Austell reports profit dip
Cornish brewer and retailer St Austell has reported a drop in pre-tax profit to £7.417,000 in the year to 27 December 2008, compared to £8,448,000 the year before.
Turnover rose for the year by £793,000 to £86,704,000.
The company reported: "Trading conditions, particularly, in the last three months of the year, proved to be the toughest for some decades and are unlikely to change during 2009. "We experienced a second summer of appalling weather and our bad debts increased significantly affecting the results at the year end.
"Sales of our own draught beers rose 10% on 2007 and our packaged beers increased by 27%.
"Tribute sales were up 18% and now account for 68% of our total volume brewed. "National sales contributed significantly to this increase with turnover up 32% on 2007."
The company has exited the keg bitter market, ending production of Duchy Bitter and Cornish Cream. St Austell continues to keg Ratler Cider for the Cornish Cyder Farm - Rattler sales increased by 67% in 2008.
The company acquired two pubs during the period - The Old Success at Sennen Cove near Lands End and the Castle Inn at Lydford on the edge of Dartmoor in Devon.
It sold three sites - The George & Dragon, Bodmin, Victoria Bars, Newquay and its Hayle depot. There was a £823,000 profit on the sale of the two pubs.
St Austell has also installed a new bottling line that enables it to have direct control of the whole production process for both its draught and packaged ales.
St Austell said it hoped that the weak pound and better weather than last summer will encourage greater numbers of people to holiday in the south-west.
