Hall & Woodhouse reports "difficult" year

Brewer and pub retailer Hall & Woodhouse has reported a "difficult year" in which the industry was hit by recession and poor summer weather.

Overall turnover in the year to 31 January 2009 was constant at £88m, despite the sale of its freetrade business.

However, due to increased costs, operating profit on continuing operations fell 24.7% from £11.5m to £8.7m.

Profit on ordinary activities before tax fell 42.8% to £5,838,000. The slow property market was reflected in property sales of just £300,000 compared to £1.2m the year before.

The company stated: "An underlying strong cashflow enabled borrowings to remain broadly constant at £59.9m at year-end compared with £59.6m even though (we) invested a significant amount of capital expenditure — £12.8m — in the year, mainly in refurbishing the existing pub estate, but also in the acquisition of a prime site in Bath.

"The site is currently being substantially redeveloped and is due to open in 2010."

The site in Bath is the former Bonhams auction house which is expected to open as a pub restaurant called the Olive Branch.

Mark and Anthony Woodhouse became joint managing directors of Hall & Woodhouse in January this year, following the death of David Woodhouse.

Matthew Kearsey, a former Greene King Pub Partners operations director, became tenanted director in March this year.

The company added: "The current year's trading has so far been very positive and is a marked improvement on last year's figures.

"With the changes already made and with  a strong balance sheet, Hall & Woodhouse is well-placed to weather the storm and continues to build for the future."