Charles Wells looks to continue pub acquisitions
He also expects to wind down disposals after selling 22 pubs in the company’s most recent financial year, saying disposals will “slowly draw to a conclusion”.
Charles Wells bought four UK sites in the 12 months to 29 September. Asked if he expected that rate to increase this year, Wells said: “Yes. Although we’ve got lots of investment going on in the brewing and the pub side, we’ve got room to make acquisitions. We’ve just got to find the right ones.”
Wells said the firm has bought an unnamed pub in Lyon under its John Bull Pub Company arm, its second in the city, as it eyes 16 by 2016. The company is looking at another site in France. EBITDA in the division grew close to €1m (£811,235) and operating profits rose 38%.
Charles Wells reported a 4.9% drop in full-year turnover in its tenanted and leased arm as the net size of the estate fell by 18. EBITDA per pub grew 3.8% and like-for-likes grew 1.2%.
Wells highlighted the extra efforts to help tenants market their pub, with circa 6% to 8% more pubs taking up marketing support in the year. Average tenure for tenants is now over six years.
Wells revealed that Charles Wells’ total tax bill as a percentage of turnover increased from about 39% to 43% in the year, with duty payments reaching £74m.
Charles Wells reported a 10% fall in overall pre-tax profits to £6m as the impact of losing income from Red Stripe and Corona was felt. The company — which also announced the appointment of group finance director Justin Phillimore as MD of Wells & Young’s Brewing Company and Andrea Holton of DHL as its new HR director — saw income rise £1m to £189m with EBITDA up 4% to £17.4m.
Own-beer sales grew 2.1%, with double-digit growth in international sales. Sales at its wine company, Cockburn & Campbell, increased 6%, with wine volumes up 2.8% in an on-trade market down 5%.
