Cains reports £2.8 loss after pubco merger

April 10, 2008: Cains has reported a £2.8 million loss for the 14 months to October 28, 2007. However, the figures are in line with expectations due to the firm's reverse takeover of pub group Honeycombe Leisure during the period.

The company said overall performance during the period was in line with current market expectations, with the group's contract packaging and brands divisions performing well and pleasing brand wins with several of the UK's largest grocery retailers.

A pub refurbishment programme is under way following the opening of the
newly-refurbished Market Tavern in Glossop. Eight further sites have been
earmarked for refurbishment as the next part of Honeycombe rebranding exercise, with another 30 in the pipeline.

"We remain cautious about the outlook for 2008 and are aware that the smoking ban and reduced levels of consumer confidence is going to have a significant impact in the short term to the business," said Cains Beer Company chief executive Sudarghara Dusanj.

"However, we are confident that a non-smoking environment will, in the medium and long term, result in growth in both bar and food sales.

"We continue to make progress from our initiatives to drive synergies and cost cutting through the business. The brewery division now provides a central distribution service of product to the pubs and this has removed the need to employ third-party contractors.

"We have started our programme across the estate to steadily transform unbranded pubs into a cohesive pub estate predominately marked with the Cains brand.

"We are confident that we now have the right brand, products, pubs and people to exploit opportunities for our future profitable growth.

Our beers, craft brewed to the highest quality, continue to win awards and loyal customers. Ongoing investment in the Cains brand is also at the heart of our growth strategy. Our sponsorship of Liverpool European Capital of Culture 2008 is having a positive impact and we are well on our way towards achieving our vision of becoming Britain's favourite beer company."