Scottish and Newcastle has posted its first ever annual loss after £683m of exceptional charges from disposals pulled the company £255.5m into the red. In the year to 29 April 2001, pre-tax profits rose 4.6 per cent to £427.5m before the exceptional charges, which included costs on the sale of Center Parcs, the sale of the Pontins holiday group, and January's reorganisation of S&N's beer distribution business. Chair Brian Stewart says the last year has been one of enormous change: We have taken steps through acquisition and disposal to concentrate the business on international beer and a smaller more focused UK pub business. Inevitably these initiatives have led to substantial exceptional costs. Today the challenge is to maintain the progress now being made within the refocused business. Last month Scottish and Newcastle sold 646 managed pubs to Noble House Leisure and Enterprise Inns, leaving its portfolio of pubs standing at 1,450.