Cains Beer Company has run into financial difficulties little more than one year after reversing into Honeycombe Leisure.
The Bank of Scotland says that it won’t support proposals from Cains which relate to the renewal of its banking facilities.
Cains & Co reversed into pubs operator Honeycombe Leisure in June 2007. The enlarged business operated more than 100 pubs. Cains, which was established in Liverpool in the 1850s, brews its own brands of beer but the vast majority of its turnover comes from brewing and canning beers under contract for 10 supermarkets and major wholesalers. It also provides canning services for other customers.
Cains reported a loss of £4.62m in the six months to April 2008. Nearly one-quarter of that loss relates to interest charges. Net debt is £32.9m, whereas net assets are just over £1m.
That is a high level of debt and it isn’t surprising that, given the twitchy nature of banks, renewing the facilities is a problem. The prospects for the company don’t look good but there may still be time to negotiate new facilities.
Cains shares have been suspended at 3p each, valuing the company at £4.53m.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.