The Bedford-based brewer and pub company, which operates out of its Brewpoint brewery headquarters, announced its financial results for the year ended 1 October 2023.
Wells & Co reported EBITDA (earnings before interest, taxation, depreciation and amortisation) experienced a significant increase, rising by £800,000 from £8.7m in 2022 to £9.5m in 2023.
As the company approaches its 150th anniversary, Wells & Co – which is the trading name for Charles Wells – said the figures demonstrate “robust financial health and resilience in a competitive market”.
It added the business’s upturn was delivered through considered cost control and a focus on consolidating capital investments despite a year of continued challenge for the hospitality sector.
Bedrock of the business
Wells & Co’s Pub Partners’ estate of 130 leased and tenanted pubs, which it described as “the bedrock of the business” helped to increase total revenue by 6% while its UK managed pubs delivered a sales increase of more than £3m across the estate, with revenue from accommodation increasing by 25%.
Wells & Co CEO Peter Wells said: “I have been delighted to see this growth being delivered from these two critical divisions of the business.
“The improvement from our Pub Partners, in particular, shows their resilience and dynamism, with sales gradually returning to a semblance of normality during the post-pandemic recovery.
“However, we are still acutely aware of the cost pressures the whole industry continues to face and the constant challenge to convert sales into profit.
French arm sales up £2.2m
“In response to this, we are doing as much as possible to provide support and offset cost increases. Just a few ways we’ve done this include holding the cost of our own-brewed beer range, introducing utility-saving measures in cellars as well as implementing voltage optimisation equipment, where possible installing electric car charging points to encourage increased dwell time, and lastly providing more resources to help with sales building plans.”
Meanwhile, the company’s French estate of 16 managed pubs also saw a surge in sales, contributing £2.2m.
Primarily, this was due to the success of France’s national team during the football world cup at the beginning of the year and the rugby world cup at the end.
Wells & Co added two more pubs to its French estate in December 2023, welcoming the House of Parliament and HMS Victory in Bordeaux to the group, and with further site acquisition plans for summer 2024.
