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Hall and Woodhouse has reported that underlying profit before tax recovered to £4.4m in the year ended 28 January 2023, up from £1.6 m the prior year.
Total profit before tax was down slightly to £10.4m, down from £11.2m the year before, though the group benefited from profits on the disposal of non-strategic assets and the marking to market of its interest rate swaps.
Over the period, net debt rose to £55.7m, up from £45.3m, as it completed the purchase of three new managed houses with the Red Barn, Woolacombe, the Wiremill, Lingfield and the Royal Lion, Lyme Regis.
It also opened the Frog, Mindenhurtst and maintained its investment across its managed house and business partner estate.
Chairman Anthony Woodhouse said: “Our post pandemic plan was to return to close to normal levels of trading and profitability but, as I warned last year, the terrible war in Ukraine had a profound effect on the economy with rapid inflation not seen since the 1980s.
“Although revenue levels were encouraging, margins were squeezed as costs and wages rose at a greater pace than we were able to pass on to our guests and customers. In this environment the profit outturn was a creditable performance, although still well below pre pandemic levels.”
He added: “Our Managed House business, where our results are more operationally geared to the volatile external environment, suffered the brunt of the margin squeeze…We continued to reap the benefits of our well established Badger and Rio brands and our world class brewing operation. Although off trade volumes fell as expected as the on trade reopened, this was offset by the recovery in trade volumes and new contract and own label business.
“Apart from a heavily weather affected July, trading since the year end has been very encouraging with strong like-for-like sales growth across the estate. It is clear that the divergence in performance between well invested pubs with the right offer and correct team levels and those not in that position is becoming increasingly marked.”
