Pub disposals
July 2010

As we move into the second half of 2010 there is no let-up on the level of disposals by large pubcos as they seek to trim their estates (and debts!). However, the opportunities offered vary widely.

Both Punch and Enterprise are still seeking to dispose of freehold units as trading concerns, with Admiral joining them with other opportunities for development of units into alternative use. These sales are mainly being handled by the major business transfer agents on a national basis and cover the full spectrum of the good, the bad and the ugly. The key to trading success for purchasers will lie in the skills and strengths they have to offer the business.

Sales at auction remain popular, with an increasing number of licensed premises made available in this manner. Some are closed and boarded units, either ripe for redevelopment or suitable for reopening, whilst Enterprise in particular is still drip-feeding investment disposals of its central London outlets to the market. The advantage here is that the new freeholders will have Enterprise on the hook for rent, as tenants, albeit having sub-let the units.

Mitchells & Butlers are also seeking to dispose of some of their franchised estate and have offered tenants the opportunity to bid. Unlike the large scale Punch sales to tenants in 2009, however, M&B are not giving first refusal to their tenants: simply inviting them to make a fully funded bid, which will be considered along with all other options. As most readers will be aware, the problem for anyone aiming to take on premises at present is the general reluctance of lenders to positively engage with the licensed sector, and attempting to obtain funded offers for these M&B tenants has entailed some exceedingly tight timeframes.

Pinders have been able to assist a number of interested parties in their aim to purchase licensed concerns and it is hoped that many will be successful, as they represent exactly the sort of purchasers that banks should be funding: experienced tenants with a solid trading record to satisfy even the most pessimistic underwriter.

Malcolm Kidby

Licensed trade director at Pinders

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An ill wind blowing some good?
May 2010

As the harshness of winter melted into an unusually warm and sunny spring, the working populace of the country started to turn their minds to summer holidays, with one of the key issues concerning hoteliers, leisure business owners and tourists being the choice between foreign travel and staycations.

The Icelandic volcano eruption could prove a lucky break for resorts focusing on UK-based tourism, as the fear of welching insurance companies may prevent budget-conscious travellers from risking venturing too far afield. Whilst any issue with airline security can also prove harmful for foreign visitors, it is unlikely that the Americas or Far East trade would be particularly affected unless their own domestic flights are also disrupted significantly.

This could be a boon to the still very tough hotel market, as any business for sale or refinance needs to be able to prove income and so any boost in the figures can only assist.

The London market is seeing growth with an increasing pace and whilst the regions tend to follow, the timing of this is currently uncertain as business users are still at a premium and consequently able to drive hard bargains on room rates. Occupancy levels however are close to stabilising and the UK still has the highest number of hotel bedrooms in active development in Europe, which suggests the long term is still viewed with optimism.

Whilst the prospect of benign weather over the summer is positive for the UK tourist industry, what is equally apparent at present is that the continual lack of consistency from commercial lenders is a deterrent to purchasers and refinancers. This, coupled with hesitancy from prospective purchasers regarding the political direction facing the country, means that volumes of completed deals are still significantly lower than normally expected, which can result in greater valuation uncertainty. However, some deals are still being done and Pinders are seeing a relatively consistent level of multipliers being applicable over recent months, following the large reductions of 2008 and early 2009, with no sign of a double dip occurring at present.

Therefore despite the current, hopefully short term, uncertainties, optimism regarding the sector remains for a more sustainable future – subject, of course, to bank lending policies.

Malcolm Kidby

Licensed trade director at Pinders

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Heineken deal completed
May 2010

Dutch brewer Heineken has completed its purchase of the beer division of Latin American drinks company FEMSA (Fomento Economico Mexicano).

Heineken is now implementing its strategy to incorporate the new business into its portfolio. The FEMSA Cerveza division – operating primarily out of Mexico and Brazil but with a growing exports business to the United States – will be placed under the remit of John Nicolson within the Heineken Americas region and will be shown in Heineken’s accounts from 01 May.

Heineken’s rival SABMiller had been a rival for the acquisition but dropped out of the auction in January, leaving Heineken free to agree a deal worth approximately €5.3bn ($7.6bn, £4.8bn). The money will be paid in 115 million shares – made up of 86 million up front and 29 million more over five years – giving FEMSA a 20% holding in Heineken. However Heineken is in the middle of the first phase of a share buy-back scheme, for which €200m ($262m) has been allocated.

The move adds the Dos Equis, Tecate and Sol brands to Heineken’s portfolio as well as allowing it to instil its signature beer into profitable Latin American markets through FEMSA’s existing routes.

The company says it has already installed new management teams in Mexico and Brazil.

"This represents the start of a new era for Heineken,” said the Dutch firm’s chairman and CEO Jean-Francois van Boxmeer.

“I am delighted to welcome a group of highly talented and ambitious people into the Heineken group and FEMSA as a major shareholder. Their contribution to the future development and continued growth of our business will be significant and we look forward to building our future together," he said.

Heineken is the world’s second largest brewer in terms of revenue with a €14.70bn turnover and more than 55,000 employees worldwide.

FEMSA will retain its soft drinks business.

news from http://www.themanufacturer.com

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Hotels 2010
March 2010

As 2010 trundles on, Pinders are receiving an increasing number of enquiries about hotel valuations and some deals seem to be progressing, albeit at a slow pace as pre-valuation investigations are increasing. 

There are also signs that the initial optimism at the start of the year was justified as London occupancy levels, which had started to grow again in late 2009 continue their upward path, and these are now joined by average room rates. True, the increase in room rates in particular are not substantial, and the year-to-date figures released are for a very short part of the year, but nevertheless, good news needs to be passed round, as bad news tends to travel of its own accord.

The provinces are still faring less well, with lower rates and occupancy levels than the preceding year, but London has always tended to lead the way out of any recovery in the hotel sector. 

There are still insufficient sales occurring to be definitive with regard to trends or predictions in value, and a steady as she goes attitude seems most prevalent, but we are seeing operators now considering selling in order to move up, or occasionally out of the market. One of the largest hotel owners soon, if not already, will be the collection of companies called banks and it is still a truism that much of the short to medium term fortunes of hotels, in valuation terms, rather than income, will be dependant upon a managed disposal of assets that have come under their direct control. Too many hotels on the market in distress circumstances only weakens the whole market. This is just as true for hotels as any other sector of the property market, be it public houses, football clubs and, of course, residential property.

So to lenders out there I urge a softly softly approach, by all means take control of what you need to if the existing operator is failing to perform to your requirements, but do consider the long term future both of the business you are thinking of foreclosing on and the wider aspect of your loan books.  Of course, if you need any help in understanding where one of your troublesome businesses stands at present, may I respectfully suggest instructing an independent view (A-hem!).

Looking forward, as the lengthy and very unhelpful winter hopefully passes us by and spring approaches, the general public should be thinking of taking more breaks, and with potential airline strikes in the news, and good incoming exchange rates, there are further opportunities for forward thinking hoteliers to be publicising their offers. The summer of 2010 will be very important for the hotel industry, although I can’t think of a year when the summer wasn’t important to the industry.

Malcolm Kidby

Licensed trade director at Pinders

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Pub and restaurant groups count cost of January blizzards
February 2010

Leading pub and restaurant groups collectively saw like-for-like sales dip 5% against the same month last year, as people stayed home rather than brave the snow.

The figures come from the monthly Coffer Peach Business Tracker, run in partnership with KPMG, UBS and the Coffer Group, which monitors performance across the UK eating and drinking-out sector.

"With so many city centres feeling more like ghost towns it is perhaps surprising that the figures weren't worse," said Peter Martin of Peach Factory, which produces the business tracker. Total sales were down 3.2% on January 2009.

"It proves once again the major effect that bad weather can have on this sector."

The disappointing January results come on the back of a strong December, which saw like-for-like sales ahead 2.9% on December, 2008 - marking a healthy performance by big name operators. They also follow nine consecutive months of collective positive like-for-likes for the 15 companies making up the business tracker group, which include leading managed pub chains Mitchells & Butlers, Whitbread and Punch Pub Co and leading casual dining restaurant groups Gondola, Pizza Hut and Tragus.

January sales were 35% below those of December - a comparison made worse by the fact that December was also a five-week month.

"However, bosses in the sector remain generally optimistic," added Peter. Peach Factory's Business Leaders' Survey, shows that just under 50% of senior executives are fairly optimistic about the coming year, compared to a little over 20% who are fairly pessimistic and 30% who are neutral. The positive sentiment is strongest among food-led rather than drink-led businesses.

The aggregated results for January are:

• Like-for-like sales change (against same month last year): - 5.%
• Total year-on-year sales change: - 3.2%
• Monthly sales change (against December 2009): - 35.1%

David Coffer, chairman of the Coffer Group, said: "The extreme weather conditions changed consumer patterns and downgraded turnover across the board in January, a month traditionally lacklustre in the trading calendar. The real effect of the discounting deals that the industry has seen in the last 18 months will surely come to the surface soon and it will be interesting to see the impact it will have on the bottom line. The test of recovery will be in the next quarter's results."

Richard Hathaway, head of travel, leisure and tourism at KPMG commented: "This year's freak winter weather made January trading for the pub and restaurant sector even tougher than usual. This is the first negative month of like-for-like sales since last spring and the largest decrease in month-on month sales since the tracker was launched. The dramatic impact the weather had on reduced footfall has been reflected across other sectors - KPMG's Retail Sales Monitor saw the worst January sales growth in 15 years.

"However, January 2010 aside, considering the severity of the downturn over the past 12 months the leading pub and restaurant groups have proven to be very resilient in the circumstances. Even in the weaker months, trading hasn't been as bad as could have been expected.

"Key to this success has remained understanding what customers want in these times and providing a great experience and good value. If you can get this right, the tracker shows that despite economic difficulties, people will still eat out."

Jonathan Leinster, head of European leisure and tobacco research, at UBS Investment Bank, added: "For the first three weeks of January, Greene King's and Marston's managed pubs had already reported like-for-like sales declines of 4% and 6%, respectively, so a poor number for the industry ought to have been expected. Snow and ice clearly took their toll, but the VAT increase and a difficult comparison aggravated an already difficult trading situation.

"Total sales across the sample fell 3.2% year-on-year. The difference between this and the like-for-like number is clearly new site openings. We expect the difference between the two statistics to narrow in 2010 since few formats have added sites in the last two years.

"Comparisons for most of the listed managed pub companies are easier in February and March than they were in January. Marston's had some soft results early in February 2009 due to snow in the Midlands. Over the two months, like-for-like sales averaged -1% for them. JD Wetherspoon and Mitchells & Butlers were trading around +0.5% on a like-for-like basis a year ago. Greene King was the stand-out a year ago with like-for-like sales around +7%, so is facing a very difficult comparison. This was due to their very successful reinvigoration of Hungry Horse and the locals businesses."

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The attraction of leisure activity businesses
January 2010

It’s a tough job, but someone’s got to do it. Pinders inspected an increasing number of visitor attractions in 2009, including petting farms, children’s activity centres, golf courses, watersports centres and holiday parks.

Given increasing pressure on consumer spending, a weak housing market, and lenders tightening funding criteria, it is worth considering why these styles of businesses remain so popular.

With more families staying at home during school holidays, this has led to increased demand for businesses that are capable of entertaining children, especially if they have wet weather options. Whilst animal-based attractions bear a heavy cost burden associated with welfare issues, they retain the ability to generate a large quantity of their income in cash, giving them flexibility in terms of cashflow without having to rely on lenders on a regular basis. Profit multipliers on these businesses have remained fairly close to pre-2008 levels, and rises in income and profit mean that some capital growth can be expected in many cases.

Golf courses have seen pressures on membership volumes and incomes, although those courses that are efficiently operated, with good quality facilities and demonstrable profit levels in line with market expectations, are still capable of attracting interest at similar levels to those seen over recent years.

Holiday parks may have been affected by the drop in residential prices, where sales of holiday homes are often dependent upon equity release, but those businesses relying on rentals have seen good levels of income due to the 2009 increase in UK holidays and short breaks, and demand for ownership of these businesses continues.

It should be appreciated that these are specialist markets and their specific needs require a more bespoke approach than the simple rules of thumb often used for mainstream businesses such as pubs and hotels. It is important, therefore, that experienced and impartial advisors such as Pinders are used to assist prospective purchasers or lenders in the decision-making process.

Malcolm Kidby
Pinders

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12 Days of a Pub Purchase*
(*apologies to Twelve Days of Christmas)
December 2009

On the 1st day of Pub Purchase, the buyer said to me: “I want to buy a pub but will only pay a very low fee.”

On the 2nd day of Pub Purchase, the seller said to me: “Come at 2 o’clock, but you’d better be done by 3”

On the 3rd day of Pub Purchase, the accountant said to me: “You’ve got the 06 and 07 figures; that’s quite enough for you to see.”

On the 4th day of Pub Purchase, the planners said to me: “If the website isn’t working, I don’t see what that’s got to do with me.”

On the 5th day of Pub Purchase, the broker said to me: ‘I know you’re working for the bank, but please tell me what the figures will be.”

On the 6th day of Pub Purchase, the banker said to me: “Thanks for the report; I like it, but it is now going to the credit committee…”

On the 7th day of Pub Purchase, the buyer’s solicitor said to me: “Here is the Land Registry plan, copied from your report, can you confirm the boundary?”

On the 8th day of Pub Purchase, the credit committee said to me: “We want a projection on a different scenario; no – wait - hang on, make that three.”

On the 9th day of Pub Purchase, the bank’s solicitor said to me: “Note the 19th century restrictive covenant not to sell liquor, but only finest Earl Grey tea.”

On the 10th day of Pub Purchase, the insurance agent said to me: “I know it’s a 20,000 m² Grade 1 Listed building, but can’t you work out a figure for me?”

On the 11th day of Pub Purchase, the trade press headline read to me: "Buyer completes on sale" (now wouldn’t that be something to see!).

On the 12th day of Pub Purchase, the buyer said to me: “How dare you spell my name wrong? I’m now going to sue you for the fee!”

Hopefully this seasonal ditty will not offend anyone, as it is clearly in jest, and I am sure some readers will quickly identify that each stage of the buying and selling process can take weeks, or even months (although we still dispatch most of our reports within 5-7 working days of the visit!). It would have been possible to continue this excruciating list for some time, such is the number of parties involved in the process these days, especially bearing in mind we haven’t even mentioned the selling agent!

However, to continue the theme for just a little longer, my five gold rings hopes for 2010 all stem from the desire to see more transactions occur:

1 - Lenders to cease internal reorganisations, and focus on supporting viable loan transactions on a more measured basis, with higher, or at the very least consistent, LTVs, income to debt coverage and across all market sectors, without summarily dismissing any one.

2 - The Licensed Trade to stop shooting itself in the foot in the national and trade press. The various trade organisations should remember that, instead of arguing amongst themselves, a united campaign is the only way to get this, or the next, government to take the trade seriously.

3 - The general public to understand that far from binge-drinking Britain, alcohol consumption has actually been declining in the UK for a number of years.

4 - Those involved in the buying and selling process need to raise their game in terms of customer service:
Agents – make sure your sellers have the necessary current trading information.
Solicitors – let’s get those searches done and information forwarded earlier than the day before completion…

• Bankers – get your risk teams to decide what you can do and then tell you ASAP!
• Sellers – prepare your business for sale, with accounts, records, licences, etc.
• Buyers – pay us a proper fee for a proper job and give us the time to do it.
• Valuers (didn’t think I could avoid this one) – support deals if appropriate or else be clear as to why not, and include all the info the bank wants: they will only ask for it later if you don’t.

5 Government – STOP MESSING US AROUND. The small business market is the life force for the UK; don’t treat it with contempt or as a cash cow, and please stop drowning us in excessive regulation.

Festive greetings to all,
Malcolm Kidby
Pinders

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Top restaurant and pub chain sales push ahead
November 2009

Leading UK pub and restaurant groups saw a healthy +2.8% increase in like-for-like sales in October. It was the largest monthly increase since Easter. The figures come from the monthly Coffer Peach Business Tracker, which monitors performance across the sector.
"The increase reflects both the continuing resilience of the major eating and drinking-out chains and the fact that October comparables were expected to be stronger, in the light of last October's post-Lehman financial crash," said Peter Martin, chief executive of Peach Factory, which produces the Business Tracker in partnership with KPMG, UBS and the Coffer Group.

The figures mark the seventh consecutive month of positive like-for-likes collectively from the 14 major companies that make up the monthly Tracker sample.

"They again emphasise the fact that the bigger players have in general been able to stay ahead of the market and that consumer spending on eating and drinking out has not been as badly hit as many predicted at the start of the year," added Peter.

Month-on-month sales were up +5.5% against the previous month of September, which in turn were -9.1% down on August. "This reinforces the sense that post-holiday September may be becoming the new January, as people temporarily tighten their belts and cut-back on food and drink after the summer," said Peter.

• The big, and largely branded, groups also continue to grow total sales through expansion. Total year-on-year sales for the sample as a whole were up +5.7%, on the back of a +5.2% increase in September.
  
  The aggregated results were:
   
• Like-for-like sales change (against same month last year): +2.8%
• Total year-on-year sales change: +5.7%
• Monthly sales change (against September 2009): +5.5%

The Coffer Peach Business Tracker, which is published by Peach Factory in partnership with KPMG, UBS bank and Coffer Group, collects and collates sales data from 14 major companies in the sector to provide an aggregated market figure. Operators making up the sample include leading managed pub chains Mitchells & Butlers, Whitbread and Punch Pub Co and leading casual dining restaurant groups Gondola, Pizza Hut and Tragus. It is powered by Demograhix.

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First Quench administration update: 35 further redundancies
November 2009

The joint administrators of First Quench Retailing (First Quench), which trades as the Threshers, Wine Rack, The Local, Haddows, Bottoms Up and Victoria Wine brands, have announced a further 35 redundancies at head office today.

Richard Fleming, UK head of restructuring at KPMG, and joint administrator, commented: "Unfortunately, we have made a further 35 redundancies at head office in Welwyn Garden City. This follows the initial 81 redundancies announced on appointment of administrators. The redundancies reflect the reduced need for head office staff, following the store closure programme announced last week. The redundancies were made across the head office teams."

First Quench Retailing operates around 1,200 Threshers, The Local, Wine Rack, Bottoms Up, Victoria Wine and Haddows branded stores across Scotland, England and Wales and employs approximately 6,300 people. Richard Fleming, Mick McLoughlin and Ian Corfield of KPMG were appointed joint administrators to First Quench on Thursday 29th October 2009. 81 staff at head office were made redundant on Friday 30th October 2009. A further 1,738 redundancies are being made as part of the closure of 373 stores, announced on Thursday 5th November 2009. There were originally 208 employees at head office, which has now reduced to 92 as part of the administration.

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Hope for Hotels in 2010
November 2009

The hotel sector has had a tough time lately, with a heavy crash in demand, bank funding, room rates, occupancy levels and, of course, values, having been experienced in 2008 and going into 2009.  It is therefore optimistically expected that the market will see some form of radical improvement, even if only from a declining to a static position, while some operators may well see modest growth.

Corporate budget operators such as Travelodge and Premier Inn are still expanding, possibly taking advantage of cheaper sites and construction costs, whilst the increased popularity of holidaying in the UK has meant that some of the smaller units have also benefited. 

Mid-market hotels are where the toughest battles have been fought, pitting the need for continual investment against pressure on room rates, with cheaper funding not materialising due to lenders’ reluctance and falling loan-to-value levels. Whilst we have seen some receivership situations, it appears that banks may have learnt at least one lesson from recent history and are keener to help customers trade through the worst times, potentially taking a view as conditions pick up.  It is to be hoped that banks do not attempt to force sales of a significant number of hotels at the same time, as this would wipe out any value growth and with it, any optimism.

At Pinders, over the past year, we have seen activity in the hotel sector increase, albeit from a very low start point. Private buyers are seeking both small guest houses, which are reporting generally strong demand and some growth in trade, and larger, formerly managed, town centre outlets which have been allowed to drift directionless, with limited maintenance, and now present an affordable opportunity for pro-active owners to recapture former reputations.

So enquiries are up; purchasers are out there; if the residential market continues its fragile improvement then new entrants will be seen,

It remains therefore up to bank funders to realise that opportunities are available for sanctioning and whilst it might be too early to break out the champagne from the hotel mini-bar, we confidently anticipate 2010 offers hope for a positive trading year.

Malcolm Kidby

Licensed trade director at Pinders

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Devon Cider Company’s future is secured
November 2009

Devon Cider Company Limited, the Tiverton based drinks manufacturer of own label and branded label ciders, has successfully come out of administration, saving 50 jobs and the future of the business.

Geoff Rowley and Nick O’Reilly, client partners from Vantis Business Recovery Services, a division of Vantis, the UK accounting, tax and business advisory group, were appointed as joint administrators on the 30 September 2009.

An offer was accepted for the business, property and assets of the company from Aston Manor Brewery Company Limited of Birmingham, the UK’s largest independent cider company with 26 years experience in the industry.

Commenting on the case, Geoff Rowley said: “We were able to develop a strategy for sale to keep Devon Cider open for trading and without having to make any redundancies.”

Peter Ellis, managing director of Aston Manor also added: “We were delighted to acquire Devon Cider to continue the art of cider making in Tiverton, Devon.”

news from www.vantisplc.com

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Threshers owner in administration
October 2009

First Quench, the owner of the Threshers and Wine Rack chains, have gone into administration.

The group, owned by private equity group Vision Capital, said it had appointed KPMG as administrator.

KPMG is seeking a buyer for the business.
 
First Quench has 1,300 stores under its various different brand names.

Many Threshers stores were sold to private investors, which means that the impact of an administration will disproportionately effect on smaller property owners.

The business had been looking at different options to save the business including CVA or sale but it was left with no other option this week than go into administration.

news from www.propertyweek.com

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Leading pub and restaurant groups see sales ahead +1.7%
October 2009

Britain’s leading pub and restaurant groups are continuing to trade positively despite predictions that the eating and drinking-out market would be one of those hit hardest by pressure on consumer spending.

A +1.7% like-for-like increase in sales in September against the same month last year confirms the sure footedness of the bigger operators during the downturn, said Peter Martin, chief executive of Peach Factory, which produces the monthly Coffer Peach Business Tracker, which monitors sales performance in the sector.

“These latest numbers mark six consecutive months of positive like-for-likes collectively from the 13 major companies that make up the Business Tracker sample. In fact, apart from a blip caused by Easter falling in different months in 2009 and 2008, like-for-likes have stayed in positive territory throughout the year so far”, Peter added.

The Coffer Peach Business Tracker is run by Peach Factory in partnership with KPMG, UBS bank and Coffer Group, and collects and collates sales data from 13 major companies in the sector to provide an aggregated market figure. Operators making up the sample include leading managed pub chains Mitchells & Butlers, Whitbread and Punch Pub Co and leading casual dining restaurant groups Gondola, Pizza Hut and Tragus.

The aggregated results for September 2009 are:

Like-for-like sales change (against same month last year): +1.7%
Total year-on-year sales change: +5.2%
Monthly sales change (against August, 2009): -9.1%

"These big, and largely branded, players also continue to grow collective market share at the expense of the competition,” said Peter. Total year-on-year sales for the sample as a whole was +5.2% in September.

Month-on-month sales fell -9.1% in September against August, bolstering the theory that September may be coming the new January, particularly for families cutting back on spending post holidays.

Mark Sheehan, managing director of Coffer Corporate Leisure, part of The Coffer Group, said: “These numbers show a steadily improving performance overall from the bigger operators. Multiple operators are generally feeling a bit more confident and certainly in the restaurant sector are on the expansion trail again.”

Richard Hathaway, head of travel, leisure and tourism at KPMG, added: "While year on year sales at the UK’s large pub and restaurant groups continue to hold their own, the fall in monthly sales in September is a sobering reminder that autumn is traditionally a tougher period and is likely to be even more so this year. We are seeing differing fortunes across the sector, just in the last week Whitbread posted a robust set of results, while others such as Tootsies went in to administration.

"It is tougher out there for the smaller operators, scale and brand recognition seems to be a key element of survival in these straightened times, as consumers seek out the best experience for the best price. There is a ray of light as the festive period approaches, but for some the challenge will be getting there. We may well see further discounting in the sector in an attempt to maintain customer footfall."

Jonathan Leinster, head of European leisure and tobacco research, at UBS Investment Bank, added: “The 1.7% LFL sales increase is an improvement from the c0.5%-1% LFL growth between May and August, and is broadly in line with recent comments from other operators (eg Marston’s +2.7% in the last nine weeks), which have recently revealed resilient LFL sales growth driven mostly by an acceleration in food sales in the last two months.

“Against the contraction in the overall out-of-home eating and drinking market place and despite strong retail competition, this shows that the major branded players are still taking market share. The managed pub companies have reported strong (1% to 4%) LFL sales since June, but much of this sales growth has been achieved through increased promotional activity. Looking into January 2010, we expect consumer expenditure to improve modestly and input cost pressures to begin to diminish, however we are concerned about the effect on margins during the first quarter as the VAT rise will occur during a seasonally weak period.”

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Wine Cellar appoints administrators
October 2009