Scottish brewer and pub group Belhaven has reported an increase in profit and trading margins over the past year, in what its owner Greene King described as "a significant achievement in the first year of the Scottish smoking ban".

 

News of the strong performance at the 300 strong pub estate, came as Greene King turned in a record performance in the year to April 29 with pre-tax profit up 17 per cent at £139.8 million on sales up 12 per cent at £917.5m.

 

Belhaven's operating profit was up four per cent at £23.3m with food sales at its managed houses up over 25 per cent. Sales overall were up by one per cent to £116.4m and sales of its flagship beer, Belhaven Best, rose by 5.6 per cent in volume terms and were ahead by six per cent over the first eight weeks of the current year.

 

Greene King chief executive Rooney Anand said each part of Belhaven had contributed to the group's success with its brewing business significantly outperforming competitors with on-trade beer volumes up 2.2 per cent on the preceding year in a market which was down by 7.2 per cent.

 

"Belhaven's results were comfortably ahead of our expectations in 2005 when Greene King acquired the Scottish business, and we are particularly encouraged by Belhaven's strong finish to the financial year," said Mr Anand. "Belhaven's revenue, trading profit and trading profit margin all grew year on year, a significant achievement in the first year of the Scottish smoking ban."

 

Summarising the overall group performance, Mr Anand said: "These record results are another step in over four decades of uninterrupted profit growth.

 

"Our unique experience across the whole of the Scottish pub and beer industry has stood us in good stead for the English smoking ban. We are well prepared and in a good position to grasp the opportunities afforded by the ban by broadening the appeal of our pubs."

 

Source: Scotsman.co.uk, 03 July 2007

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