The company saw turnover rise 14.5% to £13.4m in the year to March 2014 and gross trading profit grew 12.5% to £4.9m, driven by food sales up 26.2%.
Losses narrowed from £302,633 to ££204,000. Wear Inns attributed the losses to final consolidation costs of the 11 pubs it bought in 2012, an increase in depreciation charges of £197,693, and investments in all its pubs as it increased the food trade.
Managing director John Weir told the Publican’s Morning Advertiser’s sister title M&C report that the 26-strong firm may look to buy around three pubs in Q1 2015 and two more later that year.
Regarding overall ambitions, he said: “[We] still have a target of 40 pubs.”
Freeholds will be sought in the Yorkshire and across the north east. Regarding the strength of the pub property market, he said: “Some good deals are available, but the window is getting shorter,”
Growth
Weir said the 11 pubs acquired in 2012 had seen like-for-like sales grow by 8%, with further like for like growth in the other pubs.
“Overall, we are very satisfied with the performance of the company over the year and look forward to further improvements in the year to March 31 2015,” he said.
“Growing our cask ale offering has been a great success – we are supplied by 12 microbreweries in the North East, and a further six in Yorkshire – while the growth in our food trade has been particularly pleasing,” said Weir.
“We are looking at adding more premium products plus a selection of American craft ales in some of the pubs and improving further our food offering - the range of dishes and the way it is presented - but still in keeping with our mantra of providing great value all day, every day.
“Our pubs are very much part of the local community so we will continue to support and promote local produce from local suppliers. I would like to thank all our staff for their efforts, our suppliers and our customers for their support.
Challenges
“The company is on a sound financial footing but we never under-estimate the challenges we face. For example, while we welcome government action to limit the low price of alcohol in supermarkets to duty plus VAT, the major supermarkets do not appear to have changed their habits. During the football World Cup we saw particularly low cost offers. It is the sort of behaviour which has seen too many traditional pubs forced out of business.”
Wear Inns has been included among the Mid Market 100 companies in the London Stock Exchange’s report, 1,000 Companies to Inspire Britain.
Weir said: “We are delighted to have been highlighted as one of the 1,000 companies to inspire Britain and to find out we will be included in the Mid Market 100. We had no knowledge of either listing but feel honoured that Wear Inns has been recognised in this way.”