Burtonwood Brewery is to continue with its strategy to purchase freehold pubs.
While larger operators such as Laurel and S&N Pub Enterprises focus on sale and leaseback deals on their properties Burtonwood has been taking the opposite tact. The company acquired the freehold interest in 94 pubs in July 2002 from the JER UK Public House LLC.
The acquisitions have replaced rental charges, which were subject to upward-only review and is allowing the company to capitalise on the rising property values.
The company now has less than five per cent of its estate on short leases.
Chairman Richard Gilchrist (pictured), speaking at Burtonwood's annual results, said: "This policy gives us greater operating flexibility and reduces the earnings volatility caused by high fixed costs."
The company has also committed itself to a programme of investment and renovation in its sites. During the last year the company has carried out 52 investments across its estate and acquired six new pubs - four tenancies and two managed houses.
The company revealed that it is still continuing to sell underperforming bottom end sites.
This month the company disposed of a package of low volume, poor performing tenanted pubs for £2.6m and during the year disposed of 13 other sites which raised £1.4m.
"Our strategy of developing and adding to our estate of mainly freehold community and rural tenanted pubs is proving successful," Mr Gilchrist said.
"While we retain a nucleus of profitable, non themed managed houses, we are not exposed to the high street branded pub sector which has been afflicted by over supply and quickly changing consumer tastes."
The company has 440 tenanted houses and 37 managed houses.