Wet summer dampens trade at Jennings
The wet summer has seen Lake District brewer Jennings hit by a slowdown in visitors. However, the company said it is continuing to see the benefits of its twin focus on leased pubs and free trade customers.
Across the 26 weeks to August 28, Jennings saw turnover increase by 5.8 per cent to £9.58 million. However, the rate of increase fell from 10 per cent in the spring to just 1.9 per cent in the summer. Operating profit was up 12.7 per cent to £2.39m.
With Met Office figures showing rainfall 60 per cent above the seasonal average in the north of England, Jennings chairman John Rudgard said: "Given the impact of poor weather as compared to 2003 on the significant tourism-derived trading in our Cumbrian heartland, this is a good result."
The company's 127 leased and tenanted pubs increased turnover by 10 per cent to £6.38m. Jennings has invested just over £3million so far this year, to acquire six pubs.
Sales to the free trade fell 1.5 per cent to £3.21 million, but better margins on its cask beers helped boost the brewing side's operating profits by 2.2 per cent to £0.56 million. Jennings aims to boost distribution by launching its own fleet to deliver its beers to its own pubs as well as local free trade customers.
Mr Rudgard said: "The year-on-year trading trend has shown some improvement since the half year end as compared to the growth levels experienced in July and August, despite continued high rainfall which continues to affect tourism levels and trading, notably in Cumbria.
He added: "I continue to believe that Jennings has been substantially de-risked and is in a period of steady sustainable growth and that the company is well positioned to take advantage of expansion opportunities that may arise."
