PUBS firm Eldridge Pope has today sold its historic headquarters in Dorchester town centre for £8.9 million.

It announced the deal, which includes interests in its former brewing and packing business, nearly two years after the Weymouth Avenue site went on the market.

The move comes as the firm announced pre-tax profits of £6.4 million for the year ended September amid cost cutting to beat falling sales late in the year.

The site, which is also home to the Thomas Hardy Brewery, has been sold to Landworth Properties (Dorchester) Ltd but EP will rent offices for its headquarters at the site for £100,000 per year.

A spokesman for the firm said the assets disposed of at the Weymouth Avenue site generated profits of £737,000 in the year to September 30 out of the £6.4 million total profit.

The £6.4 million figure was down £400,000 on the same period last year amid fierce competition.

Mike Johnson, EP chief executive, said: "We signalled early indications of a consumer and tourist downturn in the summer.

"Although overall performance is lower than anticipated at the start of the year, it is in line with our revised forecasts."

He added: "The management team has acted swiftly to address ways in which we can enhance performance in what may well be a prolonged period of reduced consumer activity."

The proposed sale of the Weymouth Avenue site sparked calls in the town for various uses for the site and building which included an industrial and agricultural museum, a bus station, coach park, new link road, housing, shops and businesses.

But Neil Voss, Thomas Hardy Brewery and Packaging finance director, said: "We signed a 24-year lease in April 1997 for the site.

"As far as we are concerned it is business as usual. We have not yet spoken to Landworth but we will be in contact to discuss their intentions."

Mr Johnson added: "We have pursued a policy of carefully controlling costs and maintaining margins rather than chasing unprofitable sales.

"We remain positive about the long-term prospects for the food, accommodation and entertainment sectors of the pub industry that we are targeting for growth.

"However, in today's tough market conditions we are continuing to take a prudent view on capital expenditure and cost control."