SA Brain profits falter amid sluggish recovery

27 May 2011 by
SA Brain profits falter amid sluggish recovery

Welsh brewer and pub company SA Brain has blamed poor summer weather last year and a slower than expected economic recovery for a decline in profits.

Profits before interest and taxation for the year to 25 September 2010 fell to £4.5m, from £13.3m the year before, although last year saw the company benefit from the sale of its free trade division to Heineken.

Turnover at the firm was also slightly down, from £103m in 2009 to just over £99m last year.

In his review of the year, chief executive Scott Waddington said: "We were encouraged by our performance up until the end of June, but the combination of poor summer weather and the slower-than-expected recovery of the economy resulted in a slowdown in trading during the final quarter, leaving our year-end outcome slightly behind our target."

SA Brain said it believed the total beer and ale markets in Wales fell at least 10% during the year, while sales of its own ales fell 13% due to challenges in the free trade sector and the smooth ale market in general.

Like-for-like sales at its managed houses were up 1.5% for the full year, with overall sales growth of around £400,000. The company redeveloped 16 sites over the period.

Meanwhile the tenated and leased market continued to suffer a slowdown in consumer spending, and sales volumes fell. Rental income also fell by around 5% as the company supported tenants with a range of measures including discounts.

SA Brain raises pre-tax profit on reduced turnover >>

SA Brain investing £5m in upgrade to 22 pubs >>

By Neil Gerrard

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