Hall & Woodhouse returns to profit in FY22

Hall and Woodhouse (H&W) has welcomed a return to profitability, with an underlying profit before tax of £1.6m in FY22, down from a loss of £10.5m in FY21, despite a “challenging” financial year and ongoing disruption amid the pandemic. 

The brewery said its team, led by managing director Matt Kearsey, were to be congratulated on what has been achieved over the period.

Anthony Woodhouse, chairman of the group, said: “Such a demonstration of resilience does not happen by accident. Through the pandemic, we are justly proud of how H&W has resolutely stuck to its purpose and lived by its values despite the extreme pressure.”

In the short term, while he said the cost to the company has been “great”, he noted that the crisis has “given rise to significant opportunities” to acquire both managed houses and business partnerships at “very attractive prices”. 

H&W was reportedly able to make these acquisitions due to its strong balance sheet, tight management of cashflow and limited borrowings that were in place at the start of the pandemic. 

It also bolstered its resources by disposing of a number of smaller predominantly wet-led pubs that were said to not fit with its long-term strategy.

The disposals generated “substantial” property profits which resulted in a total profit before tax of £11.1m, down from a loss of £15.1m in 2021. Despite the acquisitions and high level of investment, net debt was also significantly down on the prior year at £45.3m, having been £60.9m in 2021.

Woodhouse added: “As I write this, the human tragedy continues in the Ukraine and our thoughts are with everyone directly and indirectly affected. I am afraid we will not be immune to the impact on the economy, but notwithstanding this, I am optimistic about H&W’s continued recovery in the year ahead.”