S&N reaps rewards from extra food sales

Scottish & Newcastle's investment in branded pub-restaurants has helped to boost its average food sales per outlet by 19%. Food now accounts for 15.4% of turnover in its managed estate.

Pubs in the south of Britain had a particularly buoyant year, the company said, indicating that its purchase of the Chef & Brewer outlets in November 1993 was paying off handsomely.

This acquisition, plus the redevelopment of 330 managed houses during the 52 weeks to 30 April, helped to drive operating profit in the retail division up 60.9% to £142.7m on sales up 38.6% to £722.7m.

At Scottish & Newcastle's leisure division, which comprises Pontin's and Center Parcs, sales were up 10.6% to £406.6m and operating profit was up 5.8% to £87.9m.

Center Parcs shrugged off speculation that its appeal may be beginning to wane by reporting occupancy levels of 90%. And Pontin's, which had a disappointing summer, increased forward bookings during the winter.

Scottish & Newcastle, whose group pre-tax profits rose 19% to £264m on turnover of £2.02b, was this week expecting to find out if Michael Heseltine, President of the Board of Trade, would allow its £425m acquisition of Courage to proceed.

The holidays division of the Rank Organisation has suffered a 3% slump in summer bookings compared with this time last year, the company announced last week.

The fall follows a rise of 5% in the volume of winter holidays sold, year on year. Rank said short break holidays were taking an increasing share of sales and this had led in part to later bookings.

But leisure division revenue was up in the seven months to 3 June 1995. Two new Hard Rock Cafés opened, while increased merchandise sales lifted turnover and profits at existing outlets.