The owner of The Head of Steam pub chain saw turnover rise but profits drop amid a year of investments and acquisitions.
Camerons Brewery owns and operates around 80 pubs around the 海角视频 which sell beers and ales brewed at its Hartlepool brewery. It has seen rapid growth since taking over the popular Newcastle-founded chain The Head of Steam five years ago and the Leeds Brewery estate in 2016.
Now the firm has published accounts for the period ended May 5 which outline how its strategy to acquire, invest and churn across its managed and tenanted pubs has continued.
Camerons is three years into a growth strategy underpinned by a 拢30m banking deal and a 拢10m funding deal, which has resulted in major expansion, taking turnover from 拢60m four years ago to 拢84.1m in the financial period, a jump of 14%.
Operating profit, however, fell from 拢2.14m to 拢1.56m, while pre-tax profit came in at 拢397,000, down from 拢1.18m, in a year which saw it increase its workforce from 292 to 356 employees, taking the payroll up from 拢7.52m to 拢9.13m.
In a strategic report published with the figures, the firm鈥檚 director Chris Soley described a busy year for the business, which saw the number of Head of Steam bars increase to 16 with the opening of a Cardiff venue, and its Urban Country Pub range grow with the addition of a York outlet.
He said: 鈥淥ur managed division consisted of 27 outlets at April 2019 with another HOS (Head of Steam) addition made shortly after the year end and we have had offers accepted on a futher two outlets which we expect to complete imminently.
鈥淲e have continued to make significant investments across the existing managed division with another five major refurbishment schemes completed during the period. These investments have, as was the case in the prior year, slightly impacted on the bottom line conversion, due to the associated closure periods, however, continuing operational performance remains strong.鈥
Mr Soley said the tenanted division 鈥 which has 48 outlets including the Rattler in South Shields and The Central in Gateshead 鈥 performed well and that the firm in continuing to invest in the pubs to boost returns, carrying out three refurnishments in the year.
A franchise division, which now has three outlets incuding a new one in Sunderland, also showed 鈥減ositive signs鈥.
Meanwhile, Mr Soley revealed a strong year for the contract bottling and brewing business, and for its own brands, which include its range of Anchor ales, bitters and stouts, Tooth and Claw beers, heritage beers and Motorhead Road Crew, resulting in new customer wins.
North East leisure leaders
Investments were made into the relatively new Tooth and Claw micro-brewery in Hartlepool, as well into warehousing and distribution facilitirs to provide extra supply chain services.
He added: 鈥淥ur investment in brand sales development is providing successful as we reach out to several different market sectors with a better and more diverse product portfolio,
鈥淚n summary the directors are pleased with the progress the company continues to make across its divisions and are confident of more growth through 2020 and beyond.鈥
