Profits fizz at brewer Belhaven

REGIONAL brewer Belhaven toasted a 23% hike in annual profits today after overcoming the impact of unpredictable consumer demand.

Scotland's largest independent regional brewer, which brews Belhaven Best and distributes Tennent's and Stella Artois, said profits hit £17.4m - ahead of market expectations, although it warned recent trading was still tough.

Chief executive Stuart Ross said: 'Consumer spending patterns remain inconsistent and market conditions are as challenging as they were last year.'

Belhaven, which has 270 pubs after opening 44 new outlets in the year to 3 April, said margins held up in all areas of its business despite increased competition and cost pressures. The expansion of its pub estate was a main driver of growth.

Levels of trading and profitability were in line with internal forecasts for the first two months of the new financial year, despite the unfavourable timing of Easter, 'tricky' market conditions and inconsistent spending.

The group also warned that uncertainty over the proposed smoking ban meant its outlook beyond March next year was less certain. It said it was impossible to predict the impact of the ban on sales and that it did not expect to be immune from the general effect.

'The smoking ban represents a major cultural change for Scottish people and presents both opportunities and threats for the the pub industry,' it said. Belhaven shares were a penny higher at 486½p in early trading.