Turnover at the group’s 115 managed pubs reached £115m, up 8.1% year on year, with gains supported by price increases, strategic investments and site acquisitions.
Profit now exceeds pre-Covid levels in nominal terms, although chairman Charles Brims warned that “real-term recovery after inflation continues”.
Retail sales were driven by a broad mix of pubs, with flagship London sites and smaller community venues both contributing. Sales at the Old Bank of England grew over 30%, while the Old Anchor in Cheshunt was up 40%. New acquisitions, including the Lock Tavern and investments in sites such as the Three Horseshoes and Crocodile, also helped drive growth.
Drinks sales rose to £66m and food sales to £44m, both up more than 7%. However, price increases impacted demand, with comparable food covers down 1.4% across the estate.
Ongoing pressures
The group highlighted ongoing labour cost pressures. Labour costs now account for 33.4% of sales, up from 29.5% pre-Covid, representing a £4.5m swing in profitability. Team turnover reached a record low of 62.2%, with team stability at a record high.
“The group has a solid and growing balance sheet, well-invested freehold pubs, and strong senior management so it is well placed to meet these challenges,” Brims said.
In the tenanted estate, beer volumes grew 2.7% overall and 6.6% at comparable pubs. Contribution rose 7.2%, although Brims noted that in real terms, long-term contribution is down 13% over 10 years.
Own-brewed beer volumes fell 5% in retail but rose 4.6% in tenancy, with growth focused on premium and seasonal beers such as the new Daze hazy IPA.
The group made several property acquisitions during the year, including the Duke of York and Lock Tavern, and post year-end secured freeholds of the Rose in Wokingham and Polecat in Prestwood.
Property remains the primary engine of long-term profit growth, though Brims cautioned that “finding assets at the required level of return is an increasing challenge”.
Tax burden ‘unprecedented’
Looking ahead, McMullen said the Government’s tax and cost burden is now unprecedented in the 21st century, particularly for flexible employers. The group also raised concerns over planned changes to Business Property Relief, which it warned could impact long-term family business stability.
“We must ensure our pubs have the funds available to make our pubs more attractive and provide better value for each hard-earned pound spent, than those of our competitors,” Brims adds.
This was chairman Charles Brims’ final statement, written ahead of his retirement at the AGM in February 2025. Stephen Gould has since taken over as chairman.
Brims concluded: “On a personal note, this is my 22nd and final chairman’s statement as I will retire at the AGM on 25 February 2025. It has been a privilege to work with the McMullen family and wider shareholder group; and a pleasure to see directors and managers throughout the group flourish and achieve success.
“It is a great organisation and I know that it will continue to thrive under my successor, Stephen Gould, who takes over as chairman at the AGM.”
