Sales growth sweet for Honeycombe
Pub management specialist Honeycombe Leisure has traded successfully through a tough period for many operators, with its pubs recently seeing a sales boost during Euro 2004.
Honeycombe, which operates its own managed estate as well as running pubs under contract for companies including Punch, saw turnover increase by 2 per cent to £33.65m in the year to May 2, generating pre-tax profits up slightly to £1.8m. The AIM listed company, which now operates a total of 95 pubs, increased its final dividend by 5 per cent to 2.3p.
Honeycombe said its core estate has experienced tough trading conditions across the year, but had maintained sales levels and pushed up food margins. On current trading, chairman Sandy Anderson, said: "Amidst the sunshine and showers we have enjoyed some big nights from Euro 2004. Our like for like sales are running some 1.5 per cent ahead of last year.
"Given competition from both other operators and discounting on an unprecedented scale from supermarkets, we believe this to be a creditable performance." Having successfully agreed a sale-and-leaseback deal for 12 pubs with Punch last year, Honeycombe has agreed two more management contracts with the leased pub giant, with two more under negotiation.
Nectar Taverns, set up by Honeycombe under the government-backed Enterprise Investment Scheme (EIS), now owns 17 pubs, all managed by Honeycombe. The company is now looking to repeat the Nectar model with a second EIS company.
It is also considering setting up yet another business, which will focus on acquiring food pubs along the lines of the Ma Hubbard brand, which Honeycombe runs under a deal with the Great English Pub Company.
Honeycombe, which has the rights to roll out the brand as well as an option to buy at a later date, said the six Ma Hubbards are trading ahead expectations.
Mr Anderson said more such management deals are the way forward. "We are energetically looking at the various opportunities available to us for further developing this increasingly successful offering."
