George Bateman & Son, the family-owned brewery based in Wainfleet, Lincolnshire, has reported an 8% increase in production over the past year to just over 30,000 barrels. But increases in raw materials and beer duty led to a drop in gross margin by 7.7% to £3.1 million in the year to 31 January and profit before tax fell to £358,140 compared to £466,671 in 2008.
The company made a profit of £398,516 profit on the sale of the Lion pub in Basford, Nottingham, to sitting multiple tenant Pub People.
Managing Director Stuart Bateman said: "We've been fortunate in improved growth in all sectors. We've been static on volumes in our pubs but have seen increases in guest beer volumes. We've also made good progress in national sales as well as in the off-trade. We've had a look at the Punch pub disposals but decided there are as many good opportunities to develop our own pubs and help tenants extend their offer."
Batemans spent around £500,000 on refurbishment schemes within its tied estate during the year, Mr Bateman added. He said costs, particularly in terms of raw materials and utilites, increaaed at an unpreceendted rate, pulling down the company's gross margin. He criticised increases in beer duty: "The government's determiantion to try and control unruly behaviour attributed to alcohol consumption with the blanket application of duty increases above the rate of inflation runs the risk of reducing market consumption while having no effect on the problem."