Devon pub company Heavitree Brewery has extended its strategic review period and warned it half-year profits will be sharply lower.
The company, which owns 76 tenanted pubs, said it would make a pre-tax loss of £130,000 for the six months to 30 April at its Annual General Meeting today.
In the same period last year the company made a pre-tax profit of £784,000.
Heavitree blamed a fall of 2.3% in sales for the six months on adverse economic conditions.
Chairman Nicholas Tucker said: “What was anticipated to be a difficult and challenging year has so far proved to be that and more.
“The strategic review is ongoing and is being undertaken at a time when the company has a strong balance sheet. The outcome will help the board to decide on the best course of action to follow during these uncertain trading and economic times.”
Heavitree announced in June that it had appointed Ernst and Young to conduct a strategic review of the business, the findings of which were originally due by today.
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By Christopher Walton
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