Charles Wells, the Bedford-based brewer and pub operator, saw like-for-like income for its 200-strong tenanted estate grow 2.2% in the year to September 2015.
The group saw turnover rise by £1.7m to £188.9m for the year, with operating profit before exceptional items up 4% to £8m. Borrowings during the period were reduced from £51.2m to £49.8m.
Chief executive Justin Phillimore told M&C that the current year had started well, adding: “What has been surprising is how strong January has been so far. It followed on from a very positive Christmas, although November was weaker than we expected.”
Charles Wells did not buy any pubs during 2015 and disposed of five, generating £1.3m of sales proceeds. It spent £2.5m on the pub estate during the year – averaging £12,600 per pub.
The company said an ongoing focus on property development and licensee support contributed to an improvement in licensee retention rates with 96% of recent appointments still being in place after 18 months and 84% after 36 months - up 4% on last year.
The year saw the expansion of the managed house estate with Merlin’s Cave in Chalfont St Giles transferred from the tenanted estate and Cox’s Yard also taken back – bringing the portfolio to three.
Charles Wells invested over £3m in improvements to the brewery in the period, including the replacement of the brewhouse control system.
In September Charles Wells restructured its senior management, with Phillimore, formerly managing director of the brewing and brands division becoming chief executive.
He said: “The year has been one of steady progress in many areas. Beer sales volume increased and in retailing we invested in new pub developments to good effect.
“Improved sales were driven by new products and marketing promotions, with Young’s London Stout and Estrella Damm demonstrating particularly effective marketing and vigorous sales. Outside the UK volumes were impacted by a number of factors, including the weakening Euro and further sanctions in Russia, yet we retained our proportion of sales outside the UK at 17% of total sales.
“Equally, our French pubs weathered the economic downturn in France and ongoing negotiations enabled us to purchase two pubs subsequent to the year end, bringing our total to 13 sites. Our new concept, the English Country Kitchen, has been building a reputation in the blossoming tea room market and is recording a good level of turnover.
“We have had many challenges and consumer confidence still seems to be recovering but we have made great progress and our plans will continue to deliver results in 2016. I am confident that the hard work and commitment of everyone at Charles Wells will drive development of our beer brand and pub portfolio even further, ensuring that the consumer remains at the heart of everything we do.”
