Increased demand for Brulines equipment

Brulines has reported an increased demand for its beer flow monitoring equipment, especially from medium sized pub companies and regional brewers.

The company, which also owns petrol forecourt monitoring systems, reported an 11.3% increase in turnover to £9.9m for the six months to 25 September, with EBITDA increasing 6.44% to £2.63m. Profit before tax was £1.9m after exceptional items of £0.3m.

Recurring revenues now account for 70% of turnover.

Brulines said its new i-draught beer quality and idspense monitoring equipment had received a "great endorsement" through its deal to supply the equipment to 1,400 Greene King tenanted pubs.

"Group performance has been resilient in a pub trading environment that has remained largely unchanged with ongoing socio-economic pressures, the burden of beer duty and legislation, as well as the recent uncertainty in the leased sector relating to the beer tie," said chief executive James Dickson.

"Despite ongoing sector cost and capital pressures, the Group has been experiencing further demand for its services, including volume recovery and i-draught and the pipeline of new enquiries is encouraging.

"Increased activity and traction with medium sized pub companies, regional brewers, hotels and the wider leisure sector is having a positive impact on the Group's customer mix as penetration is extended into the wider leisure market."

Beer tie​

Chairman James Newman said the recent Office of Fair Trading (OFT) report, which said it would take no further action on the beer tie, meant the company could now focus on further development of its systems.

"Whilst there is no doubt that the uncertainty on the enforcement of the beer tie has held back some customers from progressing new data collection and monitoring projects, the recent ruling from the OFT may allow the industry to move on and develop the data systems which are so necessary, particularly in the current harsh economic climate," he said.

Brulines installed 212 new systems in the period, while a further 341 system upgrades were carried out. "This has provided year on year growth in recurring revenue and increased margins associated with support services," said Dickson.

"Negotiations for our core beer dispense monitoring service to the tenanted/leased sector are ongoing with national and regional operators which will increase market share and gain further penetration into existing customers.

"There has also been increased demand for the Group's support service where we assist customers in optimising their beer volumes."

Yesterday, the GMB trade union said its first industrial action, if a ballot of its 3,000 tenanted pub members were in favour, would be to switch off Brulines equipment (GMB to ballot over pub Brulines switch-off​).