Cains looks for further funding to stave off collapse after £4.5m loss

28 July 2008 by
Cains looks for further funding to stave off collapse after £4.5m loss

Liverpool's Cains Beer Company is looking to secure further funding to avoid collapse after suffering a pre-tax loss of £4.5m in the six months to 28 April.

The brewer and pub company had already recorded losses of £2.7m in the 14 months to October 2007 and admitted it's ability to continue as a going concern was now in doubt.

Cains also announced the first casualty of its struggle to turn the business around with the resignation of finance director Paul Morgan.

The pub company is currently in negotiations to extend its overdraft facilities and in talks with HM Revenue & Customs (HMRC) over the outstanding payment of duty.

Sudarghara Dusanj, chief executive of Cains, said: "As predicted, the smoking ban and reduced levels of consumer confidence have had a significant impact on the short term trading position of the business.

"Our retail division is also suffering from a historic lack of investment but positive returns are being made from our investment in pub refurbishments and Cains brands are increasing their presence nationally."

Cains Beer Company was formed from the merger of Honeycombe Leisure and Robert Cains & Co in May 2007.

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By Christopher Walton

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