Everards latest trading update revealed it had seen turnover increase by £1.5m in the year to 30 September 2024, rising by 4% to £36.2m.
In addition, the firm reported operating profit for the year was 21% higher than 2023, up by £0.5m to £2.7m.
Growth across the businesses 151 strong pub estate, which consists of tenanted or managed partnership sites, was the driving force for the “positive performance”, with a 12% upswing.
Trade in the pub estate was supported by sales of Everards beers, with like for like growth of 9.5% supported by “continued innovation in both cask and craft keg brands”, the operator said.
The company invested £6.2m in both refurbishments and maintenance of pubs during the period measured, which, alongside a reduction in debt and the de-risking of the pension scheme, “further enhanced” its balance sheet position.
Strong results
In addition, the Beer Hall, managed centrally by Everards, based at Everards Meadows in Leicestershire, also performed strongly with net sales of £3.3m, delivering a 5% growth on the prior year.
Everards chairman Julian Everard said the “strong results” were a reflection of the “hard work and dedication” from the Everards team and its “brilliant business owners”
Though despite the positive figures, the chairman warned there were “serious challenges ahead” for the sector following the Budget that would impact hospitality businesses like Everards.
He continued: “The impact of employer National Insurance and National Living wage changes from April 2025, along with the reduction in business rates support, are being evaluated on a pub-by-pub basis, but will have a material effect on both pubs and Everards directly.
“Mitigation will inevitably include price rises to customers, attempts to procure goods and services at better prices and general cost reductions.
“All factors which will negatively impact on the momentum Everards and our business owners have built during 2024.”
Fundamental change
To combat these challenges, Everard called on the Government to enact “fundamental change” to business rates and introduce VAT parity with supermarkets.
“Without such action our Government runs the risk of seriously (and in some cases terminally) damaging thousands of pubs across the country.
“Many of these pubs are operated as SME’s by independent family business owners - the lifeblood of a strong economy which should be the core to any sensible Government’s growth agenda”, Everard said.
This month, Everards managing director Stephen Gould will step down from his role after two decades in the position, taking on a non-executive title with the company from January 2025.
Gould is set to be succeeded by former Greene King Destination Pubs managing director Andy Wilson, who joined Everards earlier this year.
Everard added, “Stephen has been an exceptional managing director for Everards and is respected not only by my family and the Everards team but across the pub and brewing industry. He has worked seamlessly with Andy this year to deliver a smooth transition.”
