Dorset brewer, Eldridge Pope, has announced the end of bid talks with "a number of parties" and the beginning of a "back to basics" approach at the company.

It has also reported the departure – by mutual agreement – of its chief executive, Michael Johnson, and his replacement by the current finance director, Susan Barratt.

Chris Pedder, currently financial controller, will take Barratt’s place and James Eyre will become operations director.

Christopher Pope, Eldridge chair, said that bid talks had been called off because "following discussions with a number of parties, the Board has concluded that the proposals forthcoming significantly undervalued the business and its pub portfolio."

A new management team, led by Barratt, will now focus on "delivering trading turnaround and enhancing medium and long-term shareholder value."

Announced at the same time, interim results for the period ended 5 April showed turnover up 2.7 per cent to £34m, but EBITDA down from £5.8m for the same period last year to £4.5m and profit before exceptionals and tax down from £1.9m to £0.1m.

Pope called this a "disappointing result in extremely difficult market conditions and a period of significant management disruption."

He continued: "Our financial performance in the first half has been unduly affected by a small number of poor investment decisions taken in recent years. These problem units are likely to have been sold within the current year. The company will be concentrating again on its strengths of quality tenancies, community pubs, food and accommodation inns, and bars in town centres, including Toad."

Looking ahead, Pope said the trading outlook "is still unpredictable" but was confident that the business will respond to the "back to basics" approach. Details: www.eldridge-pope.co.uk