Salford-based brewer and pub retailer Hydes has announced a record turnover for the financial year 2022/23.

The family-owned independent business, which is celebrating its 160th anniversary this year, delivered turnover of £34.1m for the year ending 2 April 2023, despite challenging economic conditions. This record figure is up £5.8m on 2022’s £28.3m.

In the financial year ended 2 April 2023, operating profit was £2.2m, the same as 2022. The previous year had significant government support in the form of grants and rates relief (£1.2m) plus VAT reductions on food and soft drinks.

Hydes, which was formed in 1863, has a pub retailing estate of nearly 50 pubs across the North West of England and North Wales.

Inflation, high energy costs, a tight labour market and rising interest rates all contributed to difficult trading conditions for the company and hospitality industry as a whole.

Accounts filed at Companies House also show the brewery was impacted by significant cost increases in food and consumable goods. Staff recruitment, particularly in kitchens, also presented a challenge, resulting in higher payroll costs across Hydes’ managed pub estate.

Chairman Richard Lancaster said fixing energy costs and negotiating long term contracts allowed the business to limit sales price increases throughout the year, ensuring competitiveness on price.

Throughout the year Hydes continued to invest in its estate. The Jolly Thresher in Lymm and The John Millington in Cheadle Hulme both underwent extensive refurbishments. Further investments were made at various other sites including the Sam Brooks in Sale, The Golden Lion in Rossett and Alfred’s in Macclesfield. All managed public houses in the estate are now fully Hydes branded.

In October 2022, Hydes completed its first freehold acquisition since September 2015, purchasing the former police station in Heswall. The Harry Beswick, has seen over £3.6m in investment and is currently undergoing an extensive renovation ahead of its opening as a premium pub and dining venue in November this year.

Two disposals from the tenanted estate took place during the year with the Carlton Tavern in Chester sold to existing tenants for £175k and The Eagle Hotel in Buxton sold for £170k.

Richard Lancaster commented: “In a year marked by unprecedented challenges in the hospitality industry, Hydes has demonstrated remarkable resilience, innovation, and customer loyalty, resulting in a record-breaking turnover in its 160th year of operation. This significant achievement not only highlights the brewery’s commitment to delivering exceptional products and services but also underscores its integral role in the communities it serves. Investment in our pubs and our people is top priority and this will continue apace throughout the next financial year.

“Significant turbulence remains with inflation still high, interest rates expected to rise further and staff recruitment still proving to be a major headache. However, our achievements over the past 12 months have paved the way for future growth. We enter the new financial year with strong trading momentum and confidence that we will continue to deliver on our strategy.

“Hydes has a strong portfolio of sites which are all in excellent condition and trading well, a brewery producing increasing volumes across a range of quality beers and a dedicated and capable workforce throughout its pubs and at head office.”