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Euro 2004 sweet for Honeycombe

NORTH west pubs group Honeycombe Leisure has enjoyed some "big nights" during the Euro 2004 soccer championships, with like-for-like sales up 1.5 per cent on last year, chairman Sandy Anderson said today.

The tournament has helped AIM-listed Honeycombe, which owns and manages 95 pubs, to enjoy a satisfactory start to the new financial year despite tough trading conditions.

Mr Anderson said: "The two largest external factors in our business are football and the weather. Amid the sunshine and showers we have enjoyed some big nights from Euro 2004.

"Given competition from other operators and discounting on an unprecedented scale from supermarkets, we believe this to be a creditable performance."

Mr Anderson issued the update as he announced Honeycombe's results for the year to May 2. Turnover rose two per cent to '33.65m and pre-tax profits increased modestly, from '1.76m to '1.8m.

The final dividend of 2.3p makes a total of 3.25p for the year, up five per cent.

In early trading, Preston-based Honeycombe's shares rose 1.44 per cent to 70.5p.

Honeycombe is driving the business by managing more and more pubs on behalf of operators such as Punch Taverns, Nectar Taverns and the Great English Pub Company.

Mr Anderson said the group is eager to grow this side of its operations and he is looking forward to the future "with considerable confidence".

He expects Honeycombe to reach 100 outlets soon as the industry undergoes major structural change, with more and more pub-owning property companies seeking management skills for their premises.

In its core estate, Honeycombe has experienced tough trading conditions but has maintained its levels of trade. It brought forward several capital schemes, including converting a site in Radcliffe and others to its Last Orders format. On the acquisition front, Honeycombe took over the Yew Tree in Bunbury, Cheshire.

The group's estate is expected to show modest profit growth during this financial year, from capital investment and better buying terms for food and beer, added Mr Anderson.

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