Wells & Co has released its results for the year ended 2 October 2022, with a total turnover of £55.2m and operating profit of £3.3m.
In comparison, turnover was £30.5m and the company made an operating loss of £1.6m in the prior year.
The pub operator and brewer further reported EBITDA of £8.7m, up on £5.1m in 2021, with recovery in trading post-pandemic despite the impact of Omicron restrictions on the period.
Wells & Co opened eight new managed pubs during the period and supported its pub operators with a 10% rent concession during the period, allowing the business to minimise the number of vacant pubs within its estate.
In September 2022, the group agreed on new three-year bank facilities with HSBC, in place until September 2025 with the option to extend for a further two years.
It intends to grow its pub businesses in the coming years, partly funding its growth strategy through debt.
According to the update, the business has looked to manage its utility costs through fixed-term contracts and has contingency plans in place to ensure its pubs can continue to trade on both sides of the channel.
“Trade has started to rebuild although consumer confidence has remained low due to impacts of utility costs, the war in Ukraine, and UK government instability through the summer.
“Our strategy in the short term is to manage debt levels carefully within the existing bank facility limits. Whilst continuing to invest within the pub estate, we continue to aim to manage debt levels to be in the region of 3.5 times our annual EBITDA.
“The changes in the UK’s economic outlook post-Brexit presents the group with both risks and opportunities. The focus is on continuing the expansion of our managed house operations in both the UK and France.”
