NEW figures from south coast department store Beales make for sobering reading.

As previously reported by the Daily Echo, pre-tax profits for last year dropped from nearly £1.1m to £260,000.

Now it has emerged that the pension fund of the Bournemouth based 12-store group, which employs 40 staff at its Winchester outlet, has a growing multi-million pound pension scheme deficit.

According to its annual report, the shortfall grew from £4.4m to £7.3m over the year, even though assets in the independently run fund rose by £2.3m.

Finance director Ken Owst said the liability increase came about because of the use of "more precise data".

Mike Killingley, the 54-year-old chairman, admitted trading results were disappointing, but not unexpected in the light of the effect of intense competition, price decreases and more cautious consumer spending.

The report, which stressed "substantial reserves", detailed the annual earnings of Beales' directors, including salary and benefits.

Chief executive Allan Allkins, 59, drew £139,000, sales director Neil Jones, 40, received £94,000 and Mr Owst, 48, was paid £98,000.

Merchandise director Tim Rathbone, 52, who resigned last August, was paid £205,000, compared to £98,000 in the previous year.

Non-executive director Mr Killingley, who joined last April, was paid £23,000.