Weston Castle, the Preston-based multiple pub operator, saw pre-tax profits more than double in the year to 30 April 2011 after adding new sites.
Pre-tax profits were £33,566 (2010: £16,996) on turnover up 39.8% to £3.91m, according to accounts published at Companies House. Operating profit increased 20.8% to £266,587.
In July 2010 Weston Castle, which ran 20 sites at the year end, secured six pubs from Daniel Thwaites. The deal gave the Preston company the option to buy the freeholds for £1.2m three years later.
Weston Castle said the addition of the sites, and a full-year of trading from the refurbished Rourkes Wine Taverns pub in Liverpool, contributed to the rise in turnover.
The increase in profit came despite a fall in gross profit margin from 56.9% to 55.4%, “largely due to the economic climate of the UK and for Weston Castle to remain competitive”.
“We always strive to offset lower margins by renegotiating barrelage discounts with our main suppliers wherever possible,” the company said.
Weston Castle spent £640,000 on refurbishment in the year and expects the figure to be “substantially lower” in the next year.
The company, which currently operates 23 pubs, secured new banking facilities with NatWest in January 2012. Its existing loans have been combined and the total loan repayable over 15 years amounts to £5.35m.
