Peach Pub Company, the multiple pub operator, saw pre-tax profits fall 39.7% to £375,128 in what it called a “difficult” trading period in the year to 30 December 2012.
Turnover for the company - which said it hoped to add one, two or three pubs in 2013 - grew 6% to £19.3m as it benefited from full-year trading for two more pubs and it opened one more.
Peach said: “This was a difficult trading period industry-wide, as we experienced economic recession coupled with the wettest summer on record.
“In January 2013, we finalised a restructuring of our loans from Nat West which had the effect of raising another £600,000 of funding. Nat West remain committed to supporting the growth of Peach, and the directors remain confident in their ability to successfully find and operate great pubs.”
Group EBITDA was £1.54m (2011: £1.71m). Peach said this takes into account £65,899 relating to the launch of the Star and Garter in Leamington Spa; £289,851 (2011: 317,168) on costs to grow its support operations; and profit-related pay and dividends to directors of £130,609 (2011: £265,073).
Normal operations EBITDA fell 18.4% to £2m.
Peach said that “all pubs continue to perform successfully despite the challenging economic environment”.
The company added: “We aim for steady further growth based on our existing principles, sharing the fruits of our labour with our key operators, and retaining sufficient profits to grow and develop our business with the support of our banking and property partners.
“Expect one, two or three more pubs in 2013 - and only great ones.
“Our medium term goal remains ‘Peaches 22’ - 22 great pubs with shared ownership, and with 6-8 partners around our Peach table.”
Operating profit for the year was £624,794 (2011: £815,278). Payment of dividends was not recommended.
Last month Peach announced that it would open its first pub in Birmingham with a £1m investment to open a site at the former home of famous architect and surveyor Francis W B Yorke.
