Heavitree: 29.8% drop in turnover

By Ewan Turney

- Last updated on GMT

Related tags: Public house, Improve, Profit

Heavitree: restructuring has helped
Heavitree: restructuring has helped
Devon-based pub company Heavitree has reported a 29.8% drop in turnover for the year to 31 October 2009 following the transfer of its managed pubs to...

Devon-based pub company Heavitree has reported a 29.8% drop in turnover for the year to 31 October 2009 following the transfer of its managed pubs to the tenanted estate.

But the company said there had been a "marked improvement in both trading profit and underlying profitability".

Despite a slump in sales to £9.2m attributed to the loss of sales from managed houses, group operating profit improved to £1.046m — up from £554,000 the year before.

Profit before tax was £1.25m, mainly attributable to the sale of six pubs for £781,000.

Its 20-strong managed house division, Heavitree Inns, which ceased trading at the end of the year generated an operating loss of £279,000, compared to a profit of £86,000 in 2008. Heavitree Inc also generated an operating loss of £13,000.

"Our restructure has allowed us to simplify our operation, improve our efficiencies and enhance support in our tenanted and leased estate of houses," said chairman Nicholas Tucker.

"The industry continues to be subject to many well documented pressures and the economy as a whole is dogged by uncertainty. The offer of the pub itself has changed irreversibly from what it once was.

"The team at this Company are working hard to recognise and embrace all the opportunities that these changes are creating and are looking to satisfy the demands of an increasingly discerning market."

Related topics: Legislation, Other operators

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