Pub People Company reports rise in earnings

It added it had completed a three-year plan to churn lower profit leases and tenancies and “reinvest in better-quality businesses”. The process has seen the company dispose of 29 sites and acquire 14 new ones.

Consolidated accounts for Pub People’s two operating companies (and holding company) showed capital expenditure in the year of £364,000 on new projects, with group turnover now at £11.6m, an increase of £370,000 — or 3.3% — on the previous year.

The company saw a rise in gross profit of 1.1%, and EBITDA stood at £419,000.

Sammons said: “We now operate 37 pubs, a mixture of freeholds and leased and tenanted businesses. Trading styles are a mixture of destination,
food, live music and community venues. We’re planning to do additional high-value capital expenditure schemes with the more enlightened brewers and pubcos.

“Wet margins have been difficult to maintain stability on, due to the duty escalator and suppliers’ price rises. Intelligent management across the categories and the new businesses with higher margins stabilised gross profits.

“Operating costs increased by 0.8%, due mainly to legislative costs and increased specialist marketing.”

In July, the group extended its relationship with Downing Corporate Finance and added five freeholds to the estate.