St Austell: profits up, turnover dips

St Austell, the Cornish brewer and pub operator, has reported a rise in profits for 2010 despite a slight dip in turnover.

Operating profit before exceptional items for the 52 weeks to 1 January 2011 was up 6.3% to £9.589m, while turnover fell £405,000 (0.4%) to £92.933m, according to accounts filed at Companies House.

Exceptional items included an impairment bill of £847,000 based on the reduced value of four properties purchased at the height of the property market.

A pensions credit, due to new limits placed on potential liabilities of the scheme, led to the net deficit on the pensions scheme falling from £7.073m to £1.696m. These exceptional items lead to a 33% rise in profit before tax and asset sales (£9.622m), while profit before tax was up 29% to £10.093m (2009: £7.806m).

Turnover in the national sales division increased 15.7%, with own-ale volumes experiencing a sixth consecutive year of double-digit volume growth.

Tribute lead the growth, with production up from three brews a week in 1999 to three brews a day in 2010 and new investment last year included the addition of three fermenting vessels.

Pub strength​

Chairman William Michelmore said the pub estate "continued to be the main contributor to the company's profits despite the challenging economic conditions that prevailed throughout the year".

The company bought two freehouse pubs in 2010 — the Masons Arms at Branscombe and the White Hart at Modbury — and one from Punch Taverns, the Watering Hole on the Barbican at Plymouth.

"All the pubs are in good trading locations and we are confident that they will make excellent additions to our pub estate," said Michelmore.

He said investment in St Austell's Cornish Distribution Centre "has been paying dividends in reduced costs", with a new night shift service introduced to allow next-day customer orders up to 4pm.

A final dividend of 51p was recommended (2010: 49p).

Michelmore said trading in the first two months of the current year have been "above expectations" but "the prospect of higher fuel costs and further public sector cuts still create uncertain economic conditions for the year ahead".

The company's plans for 2011 include the completion of its 33-bedroom lodge at the Country Arms in Truro, installing two new mash tuns and a new mill in the brewhouse and "refreshing" its core ales.