Trust Inns buoyant as profits climb yet again

Trust Inns, the 506-strong tenanted pub operator owned by millionaire Trevor Hemmings, has reported increased profit for the fifth year in a row.

The Chorley-based company recorded pre-tax profits of £12.28m for the year to 21 March 2005, a 20% plus in-crease on profits of £9.97m for the year before. Turnover increased to £31.78m compared with £29.5m the year before, with the net book value of the company's freehold pub estate put at £222m.

Trust Inns managing director Brian King revealed a fortnight ago that the company was spending £5m on developing the Trust Inns estate in the coming year. He said: 'Attracting quality licensees is still a problem throughout the industry so we want to create an estate that has the right fabric.

'We are maintaining our pubs on an annual basis but we are also committing substantial funds to help licensees extend their businesses.

'While we are still a largely beer-led community pub estate, we want to encourage licensees who want to branch out into food or letting bedroom accommodation.'

However, King said that the company was not in the business of throwing money into pubs and then jacking the rent up to unreasonable levels.

'We are taking great care to sit down with licensees to discuss development schemes and ensure they are carried out to boost business and explain clearly to them how we see them working,' he added.

King stressed: 'We are not going to allow licensees to rush into a project without full consideration of all its aspects.'

He added that Trust Inns was also working hard to create the right support package to give new recruits more incentives to join the company.

'For instance, our business development managers have areas with an average of just 38 pubs - substantially below the numbers of some rivals.

'We believe this gives them the time and opportunity to forge a good working relationship with our hosts,' he said.