Wadworth dismay as profits tumble

Wadworth, the Wiltshire brewer and pub operator, criticised the ability and attitude of some of its tenants as it reported "disappointing" results for the year to 30 September 2010.

Operating profit fell 15.5% to £6.3m, against turnover down £500,000 to £52m.

Profit for the financial year was £3.4m (2009: £3.8m). Net debt reduced by £1.2m to £31.8m.

Describing the outcome for the year as "disappointing", chairman Charles Bartholomew said the tenanted division "is still finding life difficult and ended the year 6% down", although like-for-like rental income was down just 1% and turnover of tenants fell from 22% to 17%.

"Of course we have some very good performers and some excellent new licensees and these are generally the ones who plan ahead and build support from their customers.

"But we still have a number of licensees who either have not the skills to market their pubs or still believe being an average pub is good enough. This is not the case and we need to change this attitude and jointly build trade."

With food sales in growth, he said Wadworth is fitting a training kitchen next to its visitor centre where the food development manager can help tenants with menus.

Bartholomew said: "There is a lot to do this year. We need to start by getting the tenanted side growing again and to use some of the skills we have learnt in managed houses in our tenancies."

The company sold five tenanted pubs in the year and spent £1.4m on capital projects in the division. It also bought one pub for the division: the Jolly Sailor at Saltford, near Bristol. Like-for-like sales in the managed arm were almost level after a stronger H2 mitigated the "poor" first half. Own-ale sales in the managed sites were up 7% over the period.