Everards operating profit rises 2.1%

Leicestershire brewer and pub operator Everards saw operating profit rise 2.1% in the 52 weeks to 25 September 2010, discounting an exceptional pensions credit of £780,000, despite a 4.7% fall in turnover.

Total turnover for the period was £38.96m, down £1.41m on the previous year, according to accounts filed at Companies House. Turnover from rental incomes fell 1.3% to £6.23m. Turnover from wholesale sales fell from £23.57m to £22.24m, while retail sales turn-over dipped from £490,000 to £487,000.

Operating profit increased 23.6%, from £3.63m to £4.49m, before the exceptional credit to staff costs of £780,000 in respect of curtailment gains in the defined pension scheme. Operating profit discounting the pensions credit was £3.71m.

Everards said: "Company performance has been resilient in a very competitive market as directors continue to focus on the ownership and development of freehold property and a commitment to brewing Everards ale, with cask ale sales remaining strong in our pub estate and in our national accounts business."

The company said it would "continue to acquire pubs and other property in 2011 and maintain both licensed and unlicensed properties to high standards". This is despite the "significant challenges" predicted in 2011 due to the VAT rise and above-inflation alcohol duty, along with the impact of the Government cuts on unemployment and consumer spending.

Directors' remuneration increased from £844,000 to £862,000. The highest paid director, believed to be managing director Stephen Gould, pictured left, received £366,000, up from £318,000 in 2009.

Gross margin on sales to licensees in Everards pubs increased 1%, from £7.31m to £7.38m. A dividend of 24.3p per ordinary share was paid on 31 March 2010, up from 23.6p on the previous year.