By Andrew Starke
Listed WA pub owner Compass Hotel Group has reported a first-half net loss of $3.38 million, due mainly to lower valuations on its 12 properties.
In 2009 the company posted a net profit of $1.77 million.
The company plans to fortify its position in the competitive Perth pub sector by undertaking renovations at all 12 of its venues.
“All operating venues require extensive refurbishment and this investment is considered critical to improve revenues and operating performance,” said the company in a statement to the ASX.
“Over the past 12 months, competitive supply markets have also increased and a number of venues are showing patrons shifting to newer and more modern establishments.”
Compass owns 12 pubs in WA, including the Kalamunda Hotel, Gosnells Hotel, Lakers Tavern, Brighton Hotel, Belmont Tavern and Carine Glades Tavern.
The pub owner is currently in talks with its bank St George to reduce its debt to a more sustainable level.
Shares in Compass were trading at 1.7 cents at 3pm today (March 2), down from 2 cents seven days ago.