Castle Rock Brewery has said its strong performance in the year to March was driven by site acquisition, continued brewery growth and “exceptional performance at some key sites”.
Tynemill, which trades as Castle Rock, reported revenues are up 25% from the previous year to approach £10m and operating profit of £646,894.
Managing director Colin Wilde said: “We’re working hard to innovate and increase customer loyalty to provide a high level of income sustainability. The future promises a new income stream from the management services we provide for the recently formed The Beer Consortium Ltd. This has two sites, one of which is currently undergoing significant refurbishment. Our involvement and returns from the management of Lady Bay Inns Ltd remain strong. Both of these contracts also provide an income element from tied beer supply.
“The business however will need to call on all its structural strengths to give us the flexibility to act locally, and respond quickly, to local economic, demographic and market changes especially at pub level. A small number of sites within the estate are providing a drag and the directors will press forward with the plan to either turnaround to drive revenue, or seek disposal of these sites and use the resources elsewhere. However, the rump of our estate does remain very profitable and our middle and top performers will continue to be pressed to unlock improved and sustainable returns for all the stakeholders.
“The directors thank our exceptional staff for the performance delivered in the previous year. Currently staff retention is high but further options to continue to incentivise and properly reward our key staff is paramount, not least because the recruitment of high quality staff from any source is becoming harder. The business will continue to invest in the training and careers of our brightest people and seek to attracted high calibre personnel from outside to allow the company to achieve its goals. Our accreditation as a BII trainer during the year is a particular high point. Central overheads have increased and now provide a wide skill base that allows the business to cope with most of the required demands. These additional overheads also allow a much improved foundation on which some scalability to the business can be built without the need for further central recruitment.
“The business continues to recognise the high level of competition across the brewing and leisure sector, but on the whole we believe the strategy being pursued is strong and our knowledge of the sector is deep. The directors believe that if our plans are delivered correctly the business will continue to grow shareholder value by delivering both brewery and pub growth and provide the required returns.”
