JW Lees pre-tax profits double after ‘roller-coaster four years’
The north Manchester-based business also reported revenues up 9% to £96.8m – an uplift of £9.3m.
In the previous year to March 2023 pre-tax profit was down by 56% from £7.9m to £3.5m due to factors including the cost of energy, reduced Government support and increased levels of investment in the business.
The group bought one new pub during the year, the Pointing Dog in Cheadle, in June 2023 from Marston’s as well as carrying out capital expenditure of £5.9m across 16 existing sites including the development of Founder’s Hall in Albert Square, Manchester, and the Rope & Anchor, Woolston, which is the first JW Lees Retail Agreement pub.
Retail Agreement introduced
JW Lees sold one property in the year: the Junction Garage in Middleton, and a small parcel of land at the Old Cock Inn, Middleton, which together generated a profit of £724k.
The principal activity of the group continues to be brewing draught beers and the operation of freehold pubs, hotels and inns, under both direct company management and in partnership with JW Lees Pub Partners.
This year, JW Lees introduced its Retail Agreement whereby a self-employed retail operator runs the pub with direct responsibility for the operation of the site, including all of the wages in return for a percentage of the sales. This is now being extended into two more trial sites and the group will review this operating format in the next year.
The brewery launched a 3.4% ABV Light Lager, which JW Lees said has “gone down well with our customers”, as well as brewing 52 new beers (one for every week of the year) in its small batch Boilerhouse Brewery, which led to an uplift of 175% in sales of its Boilerhouse beers, albeit from a low base, with the principle of trialling experimental brews and, if successful, roll them out and brew them in the main Greengate Brewery.
Well-placed to grow
JW Lees managing director William Lees-Jones, who exclusively told The Morning Advertiser the company was set to post record figures earlier this month, said: “It finally feels like we’re back to some form of business as usual after a roller-coaster four years with lockdowns, huge volatility in energy contracts and the cost-of-living crisis.
“As the song goes ‘things can only get better’ and we feel that JW Lees is well placed to grow our business in all three trading divisions, Managed Houses, Pub Partners and Sales.
“Pre-tax profit was only down £324k on 2019 pre-lockdown levels and so we are back with a spring in our step and we trust that the new Government recognises the importance of the hospitality sector and that there will finally be a root and branch review of business rates and fairer rates of tax on both alcohol duty and VAT, which are among the highest in the world.
“While we remain keen to acquire more pubs, inns and hotels, there have been limited opportunities for us to acquire the right sites at the right price and so we are about to embark on a major investment programme in our brewery, as we approach our 200-year anniversary in 2028 as well as adding a number of new bedroom blocks to our existing pub estate.”
JW Lees employs more than 1,600 people – 150 at the brewery and site in Middleton Junction and over 1,375 in its 47 managed pubs, inns and hotels. It also lets another 87 pubs to JW Lees Pub Partners.
