Wellington Pub Company suffers dip in turnover and profits

07-Oct-2012 - Last updated on 08-Oct-2012 at 08:24 GMT

Wellington Pub Company, the c800-strong free-of-tie leased pub operator, has blamed the state of the economy for causing a dip in profits and turnover in the year to 31 March.

Pre-tax profit fell 3.2% to £9.3m on turnover down 1.6% to £27.8m. Operating profit declined 3.8% to £20.6m.

“The company continues to maintain its market position although turnover has decreased from last year due to the current economic climate,” Wellington said.

Disposals in the year generated a net profit of c£0.3m. “During the year, in accordance with the group’s strategy for improving the long term future of the group, underperforming pubs were disposed of and some better quality pubs were acquired.”

Wellington, which is owned by the Reuben Brothers and managed by Criterion Asset Management, said that during the year it “experienced difficulties in collecting payments from its debtors and as a consequence provision has been made in the account for doubtful debts”.

In the summer Wellington placed 30 sites on the market to let on new leases. Fleurets was appointed to market the pubs, the majority of which are being offered at nil premium with annual rents ranging from £17,000 to £50,000.