Insider Media Limited

Brewer Carlsberg UK has reported a return to profit and said the expansion of its Northampton brewery, where it is headquartered, has continued on plan. The Danish brewer's UK accounts, filed at Companies House and seen by Insider, come after its Leeds site was closed in June to "improve efficiencies and profitability in the UK".

Carlsberg UK, which makes beers including Carlsberg and Tetley's for the UK market, said it had increased its overall market share from 14.3 per cent in 2009 to 15.4 per cent in 2010 but warned of "continued uncertainty regarding the health of the UK economy and a continued decline in the beer market".

The figures, covering the year ended 31 December 2010, revealed a rise in turnover to £978.8m from £946.5m the year before while the company made a £21.4m profit before taxation - up on a £10m loss for 2009.

It also made an operating profit of £25.4m - up from a £3m loss.

The profit comes after the company said the closure of the Leeds city led to the impairment of assets totalling £43m in 2008 and a further £12.2m in 2009. A site owned in Wrexham was impaired by £500,000 in the 2010 accounts.

Carlsberg UK directors added: "Key drivers and strategy decisions in the business continue to take advantage of our strong portfolio of Carlsberg family products together with looking at introducing new products where we believe there are opportunities.

"Operating profits improved by £28.4m (net of impairment charges) in 2010 when compared to the previous financial year due to an increase in overall revenue coupled with operational efficiencies."

The company said the UK economy created possible risks at a "macro level" while independent trade customers entering administration and failing to repay trade loans caused "micro level" issues.

It also warned that is major customers are continuing to push for selling price reductions which could create problems coupled with rising raw material costs.