Trust Inns posts sharp profits fall
Pre-tax profits in the year to 31 March were £2.1m (2011: £9.1m) on turn-over up 20% to £43.2m. Operating profit fell 18.4% to £11.7m.
The company, which is led by Lynne D’Arcy, said: “Underlying trading performance during the year was satisfactory, but market conditions have continued to be challenging.”
Trust Inns carried out a valuation of its land and buildings in March 2012, which reduced the overall carrying value of its fixed assets by £6m. Interest payments on bank loans and overdrafts increased from £5.6m to £7.7m.
Meanwhile, capex in the year dropped from £3.3m to £2.3m.
Staff costs increased from £3.46m to £3.52m and average employee numbers fell from 190 to 170. The firm said it has a “sound financial base and sufficient financial resources to meet the requirements of the business”.
