Hall & Woodhouse, the Dorset brewer and pub operator, says it has facilities of £60m in place for potential acquisition opportunities as it reports a rise in sales and profits in an “important” year.
Pre-tax profits grew 11.4% to £6.3m on turnover up 2.8% to £96.8m in the year to 28 January, which saw the opening of its new £5m brewery along with pub acquisitions and the opening of its Portishead restaurant. Meanwhile, current trading is “better than expected” due to “strong summer trading”, despite several large sites being closed for refurbishment in the spring.
Operating profit in the year grew 7.9% to £8.3m (pre-exceptional items). Hall & Woodhouse recommended - “with cautious optimism” - increasing the final dividend from 192p to 197p, with an interim dividend of 84p (2012: 82p) resulting in a final dividend of 365p (2012: 356p).
Chairman Mark Woodhouse said improved trading was achieved “due to the consistent high level of investment in our teams, the Badger brand, our public house estate and the systems required to make our guests’ day”.
“2012 was an important year for the company with the opening of the new brewery, the acquisition of a number of top quality sites, the opening of Portishead, the Badger bottle and label redesign and the Badger garden at Hampton Court.
“I am also delighted that the company delivered a strong trading performance despite the economic headwinds, the wettest English summer on record and the distractions of London 2012 and the Euro Football Championships.”
The firm said its managed estate “performed strongly notwithstanding the very poor weather and the distractions of Euro football and the Olympics”. “Continued investment in the estate, processes and teams drove further improvements throughout the business.”
There was also “further momentum” in its business partnership agreements in its tenanted estate.
Property sales in the year totalled £4m (2012: £2.6m) as “under-performing assets continued to be sold”.
The company said: “Despite three public house acquisitions, completing the new brewery and also investing a substantial amount of capital in its freehold public house estate, net debt only increased by £1.2m to £46.2m.
“We have committed facilities in place of c£60m, allowing us to take advantage of any opportunities in the market should they meet our investment criteria.”
It added: “Costs remain a challenge for the industry as a whole, but the company has seen the benefit of good cost controls, which have protected margins.”
