Hall & Woodhouse increases turnover and profits
Hall & Woodhouse made good progress in its financial year ending 26 January 2013. Turnover and profits both improved, and the company opened its new £5m brewery in Blandford, Dorset.
Turnover increased by 2.8% to £96.8m (2012: £94.1m). Operating profit before exceptional items increased by 7.9% to £8.3m (2012: £7.7m), and profit before tax rose by 11.4% to £6.3m (2012: £5.7m).
Despite three public house acquisitions, completing the new brewery and also investing a substantial amount of capital in its freehold public house estate, net debt only increased by £1.2m to £46.2m (2012: £45m). £4m property sales were achieved (2012: 2.6m), as underperforming assets continued to be sold.
The Managed House estate performed strongly notwithstanding the very poor weather, and the distractions of Euro football and the Olympics. Continued investment in the estate, processes and teams drove further improvements throughout the business.
Forward momentum in Business Partnerships was maintained as the company benefited from the financial success of high quality business partners, who have been attracted by the opportunity to make good returns under the new Business Partnership Agreement and the advantages arising from a well-invested estate.
The Badger range of bottled ales performed well in the take home market, and were exported to numerous countries. The brand saw significant gains from the investment in the Badger Garden at The Hampton Court Flower Show.
Current performance is better than expected due to strong summer trading. This was despite a number of larger sites being closed for refurbishment in Spring 2013. The Lulworth Cove Hotel, Dorset, The Harbour Inn, Axmouth and The Black Rabbit, Arundel all benefited from major investments and have traded above budget since re-opening. H&W Portishead continues to trade encouragingly.
Costs remain a challenge for the industry as a whole, but the company has seen the benefit of good cost controls which have protected margins.