Charles Wells profits up 4% to £8m

Claire Dodd

Claire Dodd

21 January 2016

Bedfordshire brewer and pub operator Charles Wells increased operating profits by 4% to £8m following major investment in its brewery and new managed pub arm.

Announcing its results for the year to September 2015, the company revealed that turnover rose by £1.7m to £188.9m, while total borrowings were reduced from £51.2m to £49.8m.

It spent £3m improving its brewhouse with a new control system, £2.5m on refurbishing its UK tenanted and leased estate. It also expanded its managed house portfolio, Apostrophe pubs, to four sites.

CEO Justin Phillimore said the results were due to steady sales margins and strong cost control. 'We have had many challenges and consumer confidence still seems to be recovering but we have made great progress,' he said. 'Beer sales volume increased and in retailing we invested in new pub developments to good effect.

'Improved sales were driven by new products and marketing promotions, with Young’s London Stout and Estrella Damm demonstrating particularly effective marketing and vigorous sales.'

Sales outside of the UK were impacted by the weakened Euro and trade sanctions with Russia. However exports remained at 17% of total sales.

Phillimore added: 'Our French pubs weathered the economic downturn, and ongoing negotiations enabled us to purchase two pubs subsequent to the year end, bringing our total to 13 sites. Our new concept, the English Country Kitchen, has been building a reputation in the blossoming tea room market and is recording a good level of turnover.'

Licensee retention stands at 96% after 18 months, 84% after 36 months, a figure up 4% on last year.

Related articles

Beer & Cider

Charles Wells posts significant turnover hike

Independent brewer, Charles Wells has posted a turnover hike of £4.8m, alongside a number of significant investments as it reported its 2016 results.[

News

Charles Wells and Yummy Pub Co extend partnership

The pub partnership between Charles Wells and Yummy Pub Co has grown by one, with the latter taking on the lease for the Daniel Defoe pub in London's

Beer & Cider

Marston’s acquires Charles Wells brewing business for £55 million

Wolverhampton-based brewer and pub operator, Marston’s has acquired the beer and brewing business of Charles Wells for £55 million, plus working capit

Beer & Cider

US brewer Founders agrees distribution deal with Charles Wells

Michigan-based Founders Brewing Co has struck a new distribution deal with family-owned Bedfordshire brewer Charles Wells.The agreement will see it br