Trust Inns posts sharp profits fall

25-Sep-2012 - Last updated on 12-Mar-2017 at 03:34 GMT

Trust Inns, the c.600-strong pub business owned by leisure magnate Trevor Hemmings, has reported a sharp fall in full-year pre-tax profits after paying higher interest payments and incurring a £1.9m impairment charge following a £6m property value write-down.

Pre-tax profits in the year to 31 March were £2.1m (2011: £9.1m) on turn-over up 20% to £43.2m. Operating profit fell 18.4% to £11.7m.

The company, which is led by Lynne D’Arcy, said: “Underlying trading performance during the year was satisfactory, but market conditions have continued to be challenging.”

Trust Inns carried out a valuation of its land and buildings in March 2012, which reduced the overall carrying value of its fixed assets by £6m. Interest payments on bank loans and overdrafts increased from £5.6m to £7.7m.

Meanwhile, capex in the year dropped from £3.3m to £2.3m.

Staff costs increased from £3.46m to £3.52m and average employee numbers fell from 190 to 170. The firm said it has a “sound financial base and sufficient financial resources to meet the requirements of the business”.