THE head of one of Burnley's oldest businesses has spoken of his hopes for the future as he marks the end of his first year in charge.

David Grant took over as managing director of Moorhouses Brewery in October last year at a time when the company was losing money.

During his time at the helm he has steered the business back on course and the brewery, founded more than 135 years ago, is once more in the black.

And this year once again the brewery has celebrated scooping one of the main prizes at the CAMRA Beer Festival in London.

David said: "We are going from strength to strength at the moment and really looking forward to the future.

"As well as carrying out refurbishments of all our pubs we are planning to introduce a new range of beers based on the names of the Pendle Witches.

"Hopefully, my next year in charge can be as successful as the first."

The brewery already produces the famous Pendle Witches Brew but David said others would also be brewed in the near future.

Some old favourites, such as the Christmas tipple Reinbeer, would also be making a comeback.

The brewery was founded by William Moorhouse in 1865 at premises not far from the present production site on the other side of Accrington Road. He produced mineral waters but no alcoholic drinks.

By 1870 the business was doing so well that William decided to build his own premises and relocated to the building the brewery occupies today.

This brewery was purpose-built as a drink-manufacturing site with the terraced houses on either side being added later to house workers and members of the Moorhouse family. In its original layout, incorporated in the brewery building were the stables in which the delivery dray horses were kept.

William died leaving two sons: one of whom, Thomas, took over the running of the company. In 1904 an exploding bottle seriously injured him and he later died of his injuries. His elder brother took over Moorhouse's and developed the Hop Bitters -- Old Kent Mild, Old Peter Stout, and Old Boss Bitter which won two exhibition awards. These Hop Bitters were low in alcohol, less than 2 per cent abv and deemed to be "non-intoxicating liqours." They were sold on draught in Temperance bars throughout the North-West and exported in bottles throughout the world, selling particularly well in Muslim countries, where alcohol is banned.

In the 1930s a decision was made to concentrate on the Hop Bitters sales and production and the minerals side of the business was sold to Thwaites of Blackburn.

The company remained in the hands of the Moorhouse Family until 1978 when it was sold by its last surviving member, Thomas Fawcett.

When Tom Fawcett sold the company he sold the brewery premises, the brewery plant and the recipe for Hop Bitters. He refused to pass on the recipes for the other products and soft drinks, stating that they were family recipes and as he had no family to pass these on to they would go with him to the grave.

The one recipe that he did pass on is for a shandy concentrate that is still produced to this day.

He also insisted that as part of the sale agreement he would remain on the brewery payroll for the rest of his life. As the new owners were keen to acquire the business and premises and were aware that Tom was 73 at the time and not in the best of health they agreed. He died in 1995 aged 90.

The purchaser in 1978 was a local builder named Micheal Ryan, who had an interest in producing 'real ale.'

On acquiring the business, Mr Ryan employed a brewer to make the beer and a salesman to sell it. Within 12 months, Mr Ryan discovered he was losing money at such an alarming rate that he had to sell the company to try to regain some of his losses.

During the course of the next two years the brewery changed hands four times, each successive owner failing to make money at the venture. At this time the brewery was struggling to sell 10 barrels of beer a week.

In 1982, local businessman Alan Hutchinson bought the business. Mr Hutchinson owned a chain of hotels, bingo halls and night clubs and used the brewery as an independent supply to his retail estate. Furthermore, he knew the reputation of the brewer and the salesman so he sacked them both. With a new brewer in situ and a new brand introduced, Pendle Witches Brew, brewery production grew steadily to a level of 25 barrels of beer a week.

Unfortunately, Mr Hutchinson died quite suddenly in 1985 and his business empire was bought en bloc by Robert Sangster, who at the time owned Apollo Leisure. While the hotels and bingo halls fitted in quite well with Mr Sangster's existing business, he had no desire to own a small brewery in Burnley. He therefore gave instruction that the brewery was to be sold or closed within six months.

Workers at the brewery had been issued with their redundancy notices when a Manchester businessman, William Parkinson, during the course of a business lunch, tried a pint of Pendle Witches Brew. Being originally from Burnley he made inquiries at the bar as he had never heard of it before. The barman told Mr Parkinson of the company's imminent closure. He then made a number of inquiries and within seven days bought the brewery.

Since then Mr Parkinson has invested in the region of half a million pounds in the business, a new brew plant was installed in 1988 and a new warehouse distribution depot added in 1995. These additions and improvements now give the brewery the capacity to produce 220 barrels of beer a week, the installation of more fermenting vessels would increase capacity to 400 barrels a week, a level they hope to reach by 2005.

The company has six pubs of its own, four in Burnley, The General Scarlett, The Standy, The Wheatsheaf, and The Dragoon. It has one in Bury, The Dusty Miller, and one in Atherton, The Pendle Witch. In addition to supplying its own outlets Moorhouse's supplies beers to about 300 free trade outlets within a 50-mile radius of the brewery. In addition to these domestic sales the bottles are exported to Canada, USA, Holland, Belgium, France, Italy, Sweden and Cyprus. Pendle Witches Brew is also brewed under license in Cyprus.

Moorhouse's now has a payroll in excess of 50 full and part-time employees, 12 of whom are employed directly at the brewery. The brewery's turnover alone is in excess of £1.2 million a year.

Tours of the brewery are available and run three times a week. The tour includes the chance to sup a pint at the General Scarlett pub opposite the brewery site. For details call 01282 422864.