HAMPSHIRE brewer George Gale & Co has turned in its 13th year of profit growth for the last financial year, despite a difficult operating climate and environment.

Turnover increased by 3.3 per cent to £36.6m. Profit before tax and exceptional items increased by 8.5 per cent to £3.5m and pre-exceptional earnings per £1 ordinary capital increased from 126.1p to 134.6p.

In light of these results, the board recommends a final

dividend of 34p per £1 ordinary share, which, together with the interim dividend of 14p, makes a total dividend for the year of 48p, an increase of 6.7 per cent.

Despite trading with two fewer pubs, turnover from managed pubs increased by one per cent.

Improved margins and tighter control of operating costs resulted in divisional profit being 2.4 per cent up on last year.

The Horndean company continued to invest in its existing estate, carrying out refurbishments during the year at the Harvest Home, Denmead, Thomas a Becket, Worthing, Hogs Lodge, Clanfield, Fox & Pelican, Grayshott, and The Jolly Farmer, Blacknest.

A number of new managers joined the company.

"At the same time the development of existing licensees and staff remains a key objective,'' said Nigel Atkinson, managing director. "During 2002 we extended the range of training courses offered with 354 people attending 32 courses.

"This activity will be further enhanced next year by the appointment of a retail training manager in April, a new position in the company

"The trading environment continues to be extremely challenging with the key task of the industry to increase the 'pub-going' habit and at the same time raise customer service standards and sales.

"In addition we face increasing costs due to new legislation and the other issues resulting from the introduction of the new Licensing Bill and the Working Time Directive.

"Despite these challenges the company continues to pursue a profit path that has been achieved by a proven strategy, high quality assets and excellent people.

"Our mix of country and community pubs should fare better than the fashionable high street pubs which are more susceptible to market changes.

"We will, however, be alert to changes within both the market and the economy so that we can respond quickly and effectively.

"We believe that we are well positioned to take advantage of new opportunities and that the current year will show further progress."