Brulines leisure division sees drop in turnover

Brulines, has reported a drop in turnover in its leisure division due to continuing pub closures.

Turnover in its leisure arm was £18.16m down from £19.33m in 2010. Overall turnover for the group was up by 22.4% to £24.28m, largely due to three key acquisitions in its fuel division.

The group admitted that the past year has been a "mixed one" for the Group, with the Leisure division proving difficult.

It said this was due to pub sell-offs a well as the delayed commitment to new activity from its core leisure customers.

In total 761 new beer flow monitoring systems were installed over the period, of which 677 were iDraught units.

The company launched iDraught in March 2011 — and these now account for 8% of installations.

The company said: "Although it was disappointing that new installations fell over the year the fact that nearly 90% of these were higher value iDraught was highly encouraging.

"During the period, the group continued the roll-out of iDraught to several customers including the Greene King Pub Partners estate.

"Further iDraught progress is expected through 2012, both in the tenanted and managed arenas as commercial pilot tests and contract negotiations are concluded, although the impact of this could be offset to some extent by further pub disposals that certain pub companies are evaluating."

Brulines confirmed it has had "open dialogue" with the appropriate committees and industry bodies, concerning the BIS investigation into the beer tie. Although, it believes the Government will find "little merit" in further political intervention.

James Newman, chairman of Brulines Group plc, said: "Despite the ongoing difficult economic conditions, this has been a transformational year for the Group.

"We have made a total of four acquisitions, three of which strengthen our Fuel Solutions division in particular, where the Board sees considerable opportunity for growth.

"The Group has made good progress in terms of both developing its products and enhancing its market positioning, ensuring that our offering is highly targeted for the significant markets that are available.

Profit before tax fell to £3.02m from £4.03m. in 2010 Operating profit before amortisation of goodwill, share option and exceptional costs was £3.96m.