This press release provides details and comment relating to the company’s statutory accounts for the year ending on 30 March 2014 and trading over the first half of the new financial year.
This was the company’s first full year of trading following a major restructuring in 2012 which involved the sale of Hydes’ free trade business, the closure of its Moss Side brewery and the establishment of a new brewery and head office at MediaCityUK in Salford.
The results represent good progress in delivering the cost savings related to the restructure and the trading benefits of increased focus on core activities.
Company turnover grew by 9.4% to £18.5m and operating profit by 25% to £1.77m. The turnover growth was primarily driven by successful managed house refurbishments and the conversion of selected sites from tenanted to managed house operation. There were no new site acquisitions during the year.
The major developments that drove turnover in the year were undertaken at the Jolly Thresher, Lymm (reopening February 2013), The Fletcher Moss, Didsbury (July 2013), the Coach and Four, Wilmslow (August 2013) and the Pack Horse, Affetside (February 2014). The Crown in Cheadle, the Grey Horse in Central Manchester and the Bulls Head in Lymm were transferred from tenanted to managed house operation during the year.
The restructuring has streamlined the company’s operations. Our strategy is to invest in developing the quality of our pub estate, the transfer of selected tenancies to managed operations and the acquisition of good quality pub sites in areas with strong demographics and high disposable income, whilst disposing of unsustainable sites.
The new brewery is producing a wide range of outstanding cask beers including old Hydes favourites such as Original and Manchester’s Finest and a range of L S Lowry inspired beers, featuring the artist’s work on the pumpclips, reproduced with the kind permission of the Lowry Centre Limited.
Managing Director Chris Hopkins commented “This was a very encouraging year for the business following the major changes that were implemented in 2012. Those changes were designed to streamline the company and prepare Hydes for the future. The performance in the last financial year endorses the difficult decisions that were taken. We now have clear plans in place and a strong management team to deliver them”
First Half of 2014/15
Trading during the first half of the new financial year has continued to be positive with similar trends to those seen in the prior year. In addition three sites have been acquired during this period, one of which has now commenced trading whilst the other two are expected to open towards the end of 2014 following significant refurbishment. These sites will be the subject of a separate press release.