Hall & Woodhouse reports rise in profits

Turnover rose 4% to £94.1m and operating profit before exceptional items grew 5.3% to £7.7m in the year to 28 January.

Chairman Mark Woodhouse said that this is “particularly pleasing” as it occurred “despite the strong economic headwinds causing lower consumer confidence and rising material, utility and banking costs and beer duty”.

Woodhouse said that despite funding the building of a new brewery in the period, net debt only increased by £1.63m to £44.96m. “We have committed facilities in place of c£60m, allowing us to take advantage of any opportunities in the market should they meet our investment criteria.”

Woodhouse said the firm increased its investment in its pubs and people in the year; investment in its fixed assets grew from £7.9m to £10.8m. “During the year I have visited all of our public houses, which are perhaps in the best condition that they have ever been, essential in this highly competitive environment,” he added.

The company, which operates c250 pubs, achieved property sales of £2.6m, down from £8m in the previous year, which included the sale of surplus land adjacent to the Plough pub in Horsham.

“It is vital that we continue to recycle capital out of public houses that are not viable in the long term to reinvest in those in the future,” Woodhouse said.

Woodhouse said: “Against a backdrop of continued difficult economic conditions, I am pleased to announce that [the] company has continued to make good progress both strategically and financially across all business sectors.”