UK pub sector not dying, says Brulines

Brulines, the technology company which installs beer flow monitoring equipment across thousands of UK pubs, believes reports of the demise of the British pub sector have "probably been overdone".

Reporting turnover for the six months to September 26, 2008, up more than 10 per cent to £8.9m, the group said "although 4,000 pubs may close over the next couple of years, it is probable that under normal circumstances many of these pubs would have closed over the course of the next five years anyway".

Operating profits grew 7.5 per cent to £2.21m, while first half profits fell slightly to £2.17m.

The challenges facing the sector - and so the group - had so far had a "neutral effect" on its trading performance, it said.

"There has been increased demand for the operational transparency that the group's systems provide as pub operators focus on reducing shrinkage and maximising their operations," it noted.

However it acknowledged there have been "delays in installations due to organisational and structural change as customers realign their businesses to meet the commercial challenges they face".

On current trading, Brulines said it was "performing well in a difficult environment".

In a market where the focus was increasingly on cash generation and profitability, its products "will become more important to our customers than ever before", it added.

The market leader in beer flow and quality monitoring equipment - labelled the 'spy in the cellar' by thousands of licensees - Brulines has recently branched out into the petrol station forecourt monitoring business, with its acquisition earlier this year of Edensure.

It also owns AWP monitoring operations and has recently made tentative moves to exploit the massive bar market in the US.