Gale's windfall more than doubles profits at Heavitree

Exeter-based pub operator Heavitree Brewery more than doubled its profits in the six months to 30 April 2006 following the sale of its interest in George Gale and Company late last year.

Heavitree made a gross profit of £842,000 after Fuller's bought Hampshire-based brewer and pub operator Gales for £91.8m in November 2005.

The sale helped boost Heavitree's interim pre-tax profits to £1.14m compared with £434,000 for the comparable period of 2005.

Stripping out windfalls and profits from disposals, pre-tax profit increased from £193,000 to £298,000.

The group's 100 managed and tenanted pubs in the South West of England increased turnover during the half-year to £6m, up from £5.8m in the first half of 2005.

Managed houses increased like-for-like sales by 5.26%.

Company chairman William Tucker said the group's outlook was still overshadowed by the shortfall in its pension fund.

Heavitree has closed its old final salary scheme and replaced it with a stakeholder pension which it believes will avoid any future black holes.

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By Angela Frewin

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