Margins fall but Yates still improves

Implementing the Working Time Directive and the minimum wage has hit profit margins at Yates Brothers Wine Lodges by 0.5%, the company said.

Despite this, Yates reported profit before tax and exceptionals up by 15% to £7.1m for the half-year to 26 September.

The increase would have been 24% without the impact of a new accounting standard, said the group. During the period turnover in its pubs and bars increased by 27% to £61.4m.

"Despite uncertain market conditions, like-for-like sales continued the improving trend shown in the second half of last year, but remain just below par," said chairman Peter Dickson.

The company opened 12 Yates's Wine Lodges in the six months and now has more than 100 nationwide. Since September, it has opened a further four lodges and nine more are scheduled to open by March 2000.

Yates also runs 10 Ha!Ha! Bar & Canteen outlets and eight Watling Street Inns.

All the bars will be open for business as usual on New Year's Eve, and the group will be giving away free soft drinks to discourage drink-driving.