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Cains warns of business downturn

11/ 4/2008

THE BOSS of North West brewer and pub operator Cains Beer Company warned that the smoking ban and weaker consumer confidence will have a significant short-term impact on the business.

Chief executive Sudarghara Dusanj also said price hikes for raw materials such as malt, hops and barley, as well as fuel and energy bills, were also taking their toll.

However, he added he remains optmistic that the non-smoking atmosphere in Cains' 105 pubs will eventually result in higher bar and food sales.

Mr Dusanj, who runs the AIM-listed company with his brother Ajmail, revealed losses of £2.8m for the 14 months to October 28, in line with expectations. Overall turnover was £43.22m, up from £24m following the reverse takeover of Preston-based Honeycombe Leisure last summer, as well as organic growth.

The swoop for Honeycombe added 92 pubs to the Cains group.

Cains has begun a £5m programme to transform its estate and revive the traditional British local.

Glossop's Market Tavern was the first to undergo a revamp. Eight more sites have been earmarked, and Cains has another 30 in the pipeline.

The Liverpool-based group, which has a market value of £12.84m, employs a total of 400 staff.