Managed pubs boost Hydes' annual results
Hydes, the Manchester brewer and pub operator, said a "solid" performance by its 14-strong managed pub estate helped boost its annual pre-tax earnings profits by nearly 40 per cent last year.
Reporting its results for the year to March 28, 2010, Chris Hopkins, Hydes' managing director, said against a background of weak consumer spending, above-inflation duty hikes and "aggressive pricing from the off-trade" he was pleased to report turnover up 2.4 per cent to £23.3m.
Earnings before interest, tax, depreciation, amortisation (EBITDA) and exceptionals rose 38.6 per cent to £3.34m, thanks to what he described as a "solid managed house performance, very good growth in the free trade business and tight management of costs".
Hydes' tenanted operation, which contributed 21.5 per cent of turnover, saw sales and profits fall 6.3 per cent and 5.5 per cent respectively.
Hydes' gross profit rose nearly eight per cent to £10.97m, while its pre-exceptional profit rose a thumping 160 per cent to £1.6m, thanks in part to a 7.4 per cent reduction in other operating expenses to £9.4m.
A pre-tax loss of £821,364 in 2009 had been turned round into a £1.8m profit in 2010, Hydes' accounts reveal.
Hopkins said the good performance, particularly in the managed estate, had continued into the current financial year, with managed house turnover up 2.3 per cent on the same period last year.
On the property side, the brewer said it had sold two tenanted pubs during the year, leaving it with 56 such sites.
"We have continued to provide high levels of support to assist tenants who are doing their best to run their businesses in difficult circumstances and our business development managers are actively engaged in helping to address the challenges faced by some tenants," Hopkins said.
Hydes said its own-brewed beer volumes were up by 8,000 barrels to 59,000 barrels.
Following the sale of two of its pubs Hydes said its net debt now stood at £5m, its banking facilities had been "successfully renegotiated and covenants comfortably met".
Looking ahead the brewer said it recognised the issues facing the sector but that it had made a "bright start" to the new financial year.
"The business is confident in its managed houses and sees a good future for the majority of tenancies," said Hopkins.
"There are still some tenanted sites ear-marked for disposal but equally Hydes is now actively seeking acquisitions of both managed and tenanted houses and is keen to exploit the attractive buying prices which are currently available," he added.
