Hydes bounces back from weak 2008

Manchester-based brewer and retailer Hydes has reported a strong first quarter helped by warm weather after a weak trading performance in its most recent financial year.

The company, which operates 13 managed and 59 tenanted pubs, said the first quarter results had reversed the trends of the 12 months to March 29 where earnings slumped 29%, from £3.39m to £2.41m, despite a rise in revenues.

Turnover grew 6.3%, from £21.4m to £22.8m, driven by a strong performance at its new pub, the Joshua Bradley, at Gee Cross, Hyde, and growth in free trade sales. Hydes also took over some tenancies to run as managed houses on a temporary basis. But profits had been hit by weak trading in some pubs which suffered from poor summer weather, the impact of the smoking ban and the recession.

Managing director Chris Hopkins said the group had seen a 3.8% rise in like-for-like sales at its managed pubs between April and June, while free trade volumes had risen by 5.2%. Consumers trading down from restaurants to pubs and staying at home rather than travelling away for short breaks or holidays plus good weather had helped Hydes' performance in recent weeks, he added.

Hydes has also won new free trade customers and has begun brewing two new brands under contract with ABInbev, he added.

Hopkins told the Manchester Evening News​: "We knew the business would be hit hard last year, with the sector already under pressure before the recession took hold. But what's really encouraging is the way we've bounced back in the first

quarter.

"Despite the encouraging start to the new year, the outlook for the industry remains challenging. We are looking to focus on steadily improving the performance of our existing managed and tenanted pubs and growing our free trade business."