A village pub company is drowning its sorrows after the loss of a pub and the expansion of its head office staff put the business in the red.

Whiting & Hammond, which owns eight pubs, mainly in west Kent, suffered pre-tax losses of £281,000 after making a profit of £140,000 a year earlier.

Turnover fell 7.2% to £9.3m after the loss of income from the Old Dunnings Mill in East Grinstead, West Sussex, which returned to its brewery Harveys & Son when its tenancy ran out in 2014.

However, the Tonbridge company’s owner Brian Whiting said this was in large part offset by the continuing progress of the King’s Head near Sevenoaks and the opening of its Blue Ball pub in Surrey, which he said had immediately performed well beyond expectations.

Gross profit margins slipped from 30% to 28% according to its latest accounts for the year to the end of September, mainly because of the cost of launching the Blue Ball and the expansion of the head office team. Underlying food and drink margins remained stable.

Whiting & Hammond, which employs about 300 people, also owns the Cricketers Inn in Meopham, the Chaser Inn in Shipbourne, the Little Brown Jug in Tonbridge, the Kings Head at Bessels Green and the Rose and Crown in Orpington.

Mr Whiting said: “Trading conditions remain competitive with town-based chains offering an alternative dining experience, particularly in poorer weather.

“However the company remains focused on its offering of excellent food and service in a pub environment such that the underlying customer base remains firm.”

The company, which counts the Little Brown Jug in Tonbridge as its HQ, paid dividends of £78,000 to its directors.

It reopened the Rose and Crown in the spring, with its refurbishment costing £129,000. The overall value of the revamp is estimated to cost £500,000.

Mr Whiting added in his report: “Whilst further sites are always under consideration it is anticipated that much of the current year will be spent ensuring that the recent additions to the estate are making a strong contribution to the overall business.”