Arkell’s, the Wiltshire-based brewer and pub operator, reported a 6.4% increase in turnover for the year ending 31 march 2014, driven by an increase in the managed pubs it operates.
The company reported pre-tax profits up 2.9% to £1.9m, including £493,000 from the sale of a property.
Accommodation revenues for the business were up 42%, largely due to the acquisition of the Angel Hotel, Royal Wootton Bassett.
Tenancy rents fell slightly due to transfers to managed houses, but on a like-for-like basis rents increased by 2.6%.
Arkell’s own beer sales were up 2.9%.
The company said trading conditions were “beginning to show signs of easing and modest improvements in sales are coming through in the early part of the current financial year”. It added that “if this continues, modest profits should follow”.
Chairman James Arkell said: “Change is all around our business as our bread and butter for much of our 171 years is over. Profitability of our tenants has come under immense strain. For all our help, visits, guidance, investment and enthusiasm, the viability of many pubs is just not sustainable because of overheads (lighting, heating, wages, 20% VAT – thank goodness the beer escalator has been removed) and the anti-alcohol lobby, which is still very vocal.
“Also our core customers have changed. Social and financial pressures have moved them on, not away but on, to different spend priorities with other aspirational choices.”
He pointed out that major investments in pub rooms had continued, which he said showed the company’s “commitment to increase the pubs’ footprint for profit, rooms, caravans, outside eating areas”. He added: “Nothing is off limits.”
He concluded: “Nothing is easy anymore and we take most days as they come – so my thanks to all of them. So though not easy to produce ever-rising profits, we have a clear direction and investment programme. We will continue to churn properties for the enhancement of our pubs and estate.” A dividend of £520,000 was paid.”
