Old English Inns turns in trusty performance

Old English Inns has reported a 21% jump in pre-tax profits for the year ended 2 April.

Adjusted profit before tax rose by 20.9% to £6.5m, up from £5.4m in 1999.

Sales increased by 9.9% to £69.5m (1999: £63.3m) and adjusted operating profit increased by 11.4% to £10.7m (1999: £9.6m).

The group sold off 11 inns during the year, making a net profit of £230,000.

Accommodation sales were £14.3m, 14.3% up on last year. Food sales grew by 8.8% to £30.2m and drink sales by 9.3% to £24m.

But before exceptional income, operating profit increased by just 5% to £10.1m. Like-for-like sales - calculated as coming from pubs that the company has held for more than 12 months but have not had more than £25,000 spent on them - fell by 3.8%. Chief executive Colin Mayes said the year had been "difficult".

During the period, Old English Inns bought the Castle & Ball Hotel in Marlborough, Wiltshire, from Forte. It refurbished the hotel's 34 bedrooms and public areas and the hotel re-opened just before Easter.

Old English Inns now has 110 inns with rooms and 54 inns that trade as a bar and restaurant only. Its bedroom stock now totals 2,069 and the average inn has net sales of £8,000 a week.

by David Shrimpton