Robinsons profit falls 23%

Brewer and pub operator Frederic Robinson says expenditure on its new brewhouse and a sharp rise in "rehabilitation expenditure" for its tenants explains a 23.7% decline in pre-tax profit in 2010.

The company, which is based in Stockport, Greater Manchester, also revealed that it has doubled the sum it lends to incoming tenants to £1.5m over the past two years.

It added this was because of the "continued reluctance" of banks to lend to small businesses. Robinsons has reported pre-tax profits of £2.4m in 2010 (2009: £3.2m) against turnover down 4.4% to £53.4m. Operating profit was £1.6m (2009: £1.3m).

The highest-paid director's salary increased 131% from £133,000 to £307,000.Despite the decrease in turnover, sales to Robinsons' tied trade increased £0.9m to £37.9m.

Turnover in the off-trade fell from £3.6m to £0.7m.

In the tenanted estate, "rehabilitation expenditure" increased from £2.1m to £3.2m, and there was a non-specified one-off cost of £0.7m.

Rental income increased by a "more modest" figure than usual, up £100,000 to £6.8m because of rent re-ductions for pubs under temporary management and rent allowances for tenants — these two costs increased to £0.8m (2009: £0.7m).

Phase one of the new brewery development — predicted to lead to energy savings of 60% for Robinsons — was completed.

"The very severe weather during the winter period decimated the trade at many of our leading catering houses, with Christmas bookings being cancelled throughout the whole of our trading area," said chairman Paul Robinson.

"Coupled with the continued effects of the economic downturn on our customers' disposable income, it is pleasing to report that turnover was virtually static compared with the previous year and, although beer sales nationally were down again, the figures for our own products were better than the national figures."