Stange & Co has reported a turnover of £10.7m for the year ended 28 February 2022, an increase of 147% on the prior year but a decrease of 9% on pre-pandemic levels.
In its latest accounts filed at Companies House, the 10-strong pub operator reported turnover rose 147% from £4.3m in the year to February 2021 due to the relaxation of Covid measures, but saw a decrease of 9% from £11.8m in 2019.
It further reported a profit of £1.43m, up from £814,000 in 2019/20. EBITDA was £1.72m against £1.1m in 2019, attributed to strong sales assisted by government support such as VAT and business rates reductions and grants.
While closure due to the Omicron variant impacted sales, pubs saw strong trading in Q2 and Q3 of the financial year, with the majority of sites trading between 20-25% up on 2019, according to the update.
The business identified the rise in interest rates as well as utility costs as medium-term risks, the business states is well placed to navigate the current trading environment.
“As a business we have managed to maintain gross margin despite the headwinds, due to better buying and improved menu design. Our target market is also a little more tolerant to increases in the cost of living as opposed to the value end of the market. In addition, the fact that we own our freeholds and don’t pay rent means we enjoy significantly higher net margins than many of our competitors.”
The operator has also undertaken major refurbishments for part of its estate.
