Hall & Woodhouse profits 'well below' pre-pandemic level

Hall & Woodhouse has said the war in Ukraine continues to have a “profound” effect on the economy but revenue levels are “encouraging”. 

The business has announced underlying profit before tax recovered in the year to January 28, 2023, to £4.4 million from £1.6 million in 2022. 

Total profit before tax was £10.4 million (£11.2 million) as it again benefitted from profits from disposal of non-strategic assets.

Anthony Woodhouse, chairman of Hall & Woodhouse

In his annual report, Hall & Woodhouse chairman Anthony Woodhouse said: “Our post pandemic plan was to return to close to normal levels of trading and profitability but, as I warned last year, the terrible war in Ukraine had a profound effect on the economy with rapid inflation not seen since the 1980s.  

“Although revenue levels were encouraging, margins were squeezed as costs and wages rose at a greater pace than we were able to pass on to our guests and customers.   

“In this environment the profit outturn was a creditable performance, although still well below pre pandemic levels.” 

Hall & Woodhouse has recently completed the purchase of three new managed houses (including the Royal Lion in Lyme Regis), and also opened the Frog in Surrey. 

Mr Woodhouse added: “Our managed house business, where our results are more operationally geared to the volatile external environment, suffered the brunt of the margin squeeze.   

“We continued to reap the benefits of our well-established Badger and Rio brands and our world class brewing operation.   

“Although off-trade volumes fell as expected as the on trade reopened, this was offset by the recovery in trade volumes and new contract and own label business. 

“In challenging times, it becomes clear whether organisations are committed to their purpose and values.  Last year the company demonstrated its commitment clearly.  Two examples amongst many that I would highlight are the continued adherence to paying the Real Living Wage as a minimum and the donating and raising of over £600,000 to local good causes.“

He added: “Apart from a heavily weather-affected July, trading since the year end has been very encouraging with strong like-for-like sales growth across the estate. 

“It is clear that the divergence in performance between well invested pubs with the right offer and correct team levels and those not in that position is becoming increasingly marked.”