The wine merchant, which has also been hit by the on-trade’s 9.3 per cent decline in beer sales, is among many businesses which were affected by sudden exchange rate swings in a year which also saw two duty increases.
But the Suffolk company said it planned to ride out short-term difficulties by continuing to invest in its business. It opened two Cellar & Kitchen stores last year , which executive chairman Jonathan Adnams said have “great potential for the future and provide a new stream of earnings for the company”.
He added that the company remained “true to our values”. He continued: “We have also invested heavily in our brand, our staff and in our infrastructure. These actions have given us a powerful position for the future but have impacted the short term profitability of the business.”
Operating profits were £1.5 million in the 2008 financial and calendar year, down from £4.2 million in 2007.