Wadworth is using like-for-like sales increases of 3.65% across its managed estate for the year to September 30, 2017, as a springboard to increase the number of pubs this year.
A company statement said: “This has been a second year of solid progress for Wadworth as we have continued to develop the company for the long term. This year we have established a firm foundation for the future.
“From 2018, our aim is to selectively add new managed pubs to our estate, while continuing to invest organically to deliver consistent profit growth. The set-up phase of our strategy has taken a little longer than we first envisaged, but we believe it is important to get it right and we continue to invest in a number of areas, including the brewery and our support centre, to bring them into the modern era and have established a solid business infrastructure with a much-improved people capability. Undoubtedly, we are stronger and better positioned to deliver the growth we aspire to over the coming years.
Engine of growth
“Strong trading success from our pubs this year has been offset by an increased overhead base for the business. We see managed as being our engine of growth and have supported this area of the business in particular with additional resources.
“Total managed house sales were up 16.2%. Average managed house profit per pub has increased 5.8% on a like-for-like basis. Tenanted has also had a strong year and grown overall profit contribution by 2.5% with six fewer pubs. Tenanted pub numbers now stand at 159 as at year end and average profit per pub has also grown by 2.9% on a like-for-like basis.
“It has been slower in our beer business to get the cut-through we hoped for this year, but there are relationships being strongly re-established now across all channels and I remain encouraged by the foundations that are in place in a channel where results are never instantaneous.”
