Hall & Woodhouse has reported results for the year ended 28 January 2023, with underlying profit before tax recovering to £4.4m but remaining “well below” pre-pandemic levels due to cost pressures.
In comparison, underlying profit before tax was £1.6m the prior year and £5.9m in 2019.
More recently, the Dorset-based brewer and pub operator has seen ‘very encouraging’ trading in 2023 with strong like-for-like sales growth across its 180-strong estate.
According to chairman Anthony Woodhouse: “Apart from a heavily weather affected July, trading since the year-end has been very encouraging, with strong like-for-like sales growth across the estate,” he said. “It is clear that the divergence in performance between well invested pubs with the right offer and correct team levels, and those not in that position, is becoming increasingly marked.”
Turnover for the year ended January 2023 rose to £109m from £83.4m the prior year, compared to £116m pre-pandemic.
Total profit before tax was £10.4m, benefiting from profits on the disposal of non-strategic assets. Net debt rose to £55.7m, attributed to maintaining investment in the estate and the purchase of three new managed houses – The Red Barn in Woolacombe, The Wiremill in Lingfield, and The Royal Lion in Lyme Regis.
Woodhouse commented: “Our post pandemic plan was to return to close to normal levels of trading and profitability but, as I warned last year, the terrible war in Ukraine had a profound effect on the economy, with rapid inflation not seen since the 1980s.
“Although revenue levels were encouraging, margins were squeezed as costs and wages rose at a greater pace than we were able to pass on to our guests and customers. In this environment, the profit outturn was a creditable performance, although still well below pre-pandemic levels.
“Our managed house business, where our results are more operationally geared to the volatile external environment, suffered the brunt of the margin squeeze. Business partnerships had a solid year performing as expected, showing the robustness of this business model.
“We have a high quality estate with high quality business partners, with who we genuinely work in partnership. We continued to reap the benefits of our well established Badger and Rio brands and our world class brewing operation. Although off-trade volumes fell as expected as the on-trade reopened, this was offset by the recovery in trade volumes and new contract and own label business.”
