Dorset based brewer Hall & Woodhouse has announced underlying profit before tax has increased by nearly 50 per cent.
The pre-tax profit increased by approximately 50% to £6.5m (2023: £4.2m) in the year to 27 January 2024, aided by an “excellent year” across its managed estate.
The company, which sold the Rio soft drinks brand to AG Barr last October for £12.3m, said its total profit after tax also increased to £9.5m (2023: £8.1m), bolstered inter alia by the profit on the sale of Rio during the year.
Net debt reduced substantially to £37.1m (2023: £55.7m), reflecting principally the receipt of the sale proceeds of the Rio sale and the “judicious management of cash”. The company said with £50m of banking facilities in place, this leaves plenty of headroom to continue to invest in its pubs, brands and team.
Anthony Woodhouse, chairman, said the results are “excellent” despite the “well-publicised challenges for our industry”.
Profits are now broadly equivalent to pre-pandemic levels and Mr Roodhouse said he is now confident for further progress “notwithstanding the generally poor weather”.
He said: “Our managed houses had an excellent year with significant increases in total sales and covers on a like-for-like basis.
“Margins and labour productivity benefitted from a broad range of initiatives. As well as continued investment in the core estate, we opened the spectacular H&W Taplow on the banks of the River Thames.
“Our business partner business had another good year with continued steady growth. The quality of the estate, our business partners, and the support that we provide, means that this is a very stable, cash generative and valuable business. We were delighted to be ranked as the ‘Best Tenanted Pub Company’ by the licensee index.”
The rebranded Badger range has also been recognised as a factor for increased profits, with the new craft ale range Outland from Badger Brewery performing “very well” in Hall & Woodhouse’s pubs.
Mr Woodhouse added: “In a year when the focus has quite rightly been on restoring profitability, it is doubly pleasing that we have stayed true to our purpose and values.
“For example, by continuing to pay the equivalent of the real living wage as a minimum, and by increasing the amount we have donated and raised for local good causes to approximately £0.7m in the year.
“Additionally, we are delighted to have featured on this year’s Sunday Times Best Places to Work list.
“Matt Kearsey, managing director, and the team deserve praise and have my heartfelt thanks for producing a remarkable performance – such an outcome does not come by luck, but by designing and delivering a clear plan with hard work, passion, and skill.”
