Exclusive: McMullen's to buy pubs

Hertfordshire brewer and retailer McMullen's believes that it is well-placed to buy pubs after avoiding paying peak-of-market prices in recent years.

Chairman Charles Brims said: "Finding new pubs remains one of the highest priorities, but we have been reluctant to pay the very high prices at what was the peak of the market.

"During 2008, we looked at more than 200 possible acquisitions, but only made offers on five — we were out-bid on each of these five. However, the dramatic change to the economy in recent months means that pub prices are now staring to fall to realistic levels.

"We believe there will be many opportunities for us and, having sold our surplus unlicensed properties at the top of the market, we now have the cash to make pub acquisitions."

Brims said that McMullen's had reversed its policy on developing greenfield sites because of the fall in pub prices — and withdrawn from sites in Braintree and Milton Keynes.

The chairman's comments came in its Companies House annual accounts submission, which show a decline in beer volumes of slightly more than 8% through its own pubs in 2008 and a 2.7% decline in managed pub sales. The company, where Peter Furness-Smith is MD, saw turnover decline by £77,000 to £55.07m while profits before tax and exceptionals rose 11% from £7.3m in 2007 to £8.12m for the 52 weeks to 27 September 2008 — there was an exceptional item of £1.76m thanks to the sales of surplus properties.

Chairman Charle Brims said: "These figures mask the fact that 2008 was a very difficult year. The smoking ban in pubs, together with the availability of cheap alcohol in supermarkets, has had a severe impact on the trade in many pubs, particularly community pubs."