Brulines: beer monitoring business is challenging
Beer flow monitoring company Brulines has warned that underlying trade for the six months to 1 October may be "marginally" below expectations but in line with last year.
The company said that trading in its core beer monitoring business "remains challenging" despite the "good progress" made in the rollout of its new i-draught equipment — both in the UK and abroad.
"Faced with the unprecedented economic conditions and well documented commercial pressures affecting some core leisure customers, we are implementing a two pronged strategy to continue to root out costs and drive sales, particularly of our newer products," said chief executive James Dickson.
"This has gone some way to mitigate the position in the short term but in the longer term as conditions moderate we anticipate a resumption of growth.
"Trading in the Group's core beer monitoring business remains challenging despite good progress both in the UK and overseas with the roll-out of i-draught, the Group's beer quality and EPOS variance monitoring product. This product now accounts for 7% of our total installation base."
It said that losses from its vending machine monitorimg arm, Vianet, continue to be reduced, while it continues to extend its footprint in the forecourt market with the acquisition of Energy Level Systems Ltd, Retail & Forecourt Solutions Ltd, and LBI installations Ltd.
"The Board fully expects the difficult economic environment and current challenging trading conditions to continue for some time yet; however the future growth prospects across our Leisure and Fuel Solutions divisions are encouraging and management continues to view the longer term future with confidence," said Dickson.
"The Board anticipates maintaining a progressive interim dividend from the Group's continuing cash generation from its core business in the first half of the year."
