Family brewer raises a glass to rising profits

Britain’s pubs are under threat. In the last three years, nearly 3,200 have closed their doors for good – that’s three locals disappearing every day.

However, amid that uncertainty, family brewer Robinsons is raising a glass to rising profits which it says have been driven by record levels of investment and a commitment to its managed houses.

The 180-year-old Stockport-based family run business saw turnover grow to a record £75.5m for the year ending 31 December 2018, compared with £71.2m the previous year.

And profit before tax increased to £7.1m, compared with £3.2m last year.

The independent brewer and pub operator, which runs 255 pubs, inns and hotels across the North West, say this success was driven by record investment levels in recent years paying off, solid tenanted pub performance, and the continued progression of their evolving and growing managed house business.

During the financial year, Robinsons completed 19 major customer facing investments in its tenanted estate at a cost of £2.2m.

It’s no secret that Robinsons has worked hard to improve the quality of its pub estate in recent years.

William Robinson, managing director (pub division), says: “Investment, licensee support and training have been key drivers over the last five years.

“During that time, we have invested £26.7m of capital expenditure and completed 127 refurbishments.

“As a result, our tenanted and managed pubs are in extremely good shape, trading well, and are in a strong position to continue to grow sales.”

However, 2018 wasn’t all good news. Increased business costs, a declining UK cask beer market, the ‘Beast from the East’ and a CO2 crisis all brought their own challenges for the sixth generation family business.

Managing director (beer division), Oliver Robinson, says: “Last year was both challenging and rewarding.

“We operate in uncertain political and economic times and face increasing costs: rates re-valuation, national living wage, food inflation, auto enrolment, beer duty inflation and the potential risks and opportunities that Brexit may bring.

“Furthermore, we operate in an era of national decline in cask beer and more consumers than ever abstaining from alcohol.”

“Nevertheless, we performed well, both in-year and in preparation for the years to come.

“This saw us plan for a very successful launch of our own Helles Lager Bier which is in over 100 pubs already and our own stout.

“The Old Tom stable of beers grew by 11 per cent with great gains in off trade and export which has provided a strong platform for an exciting 2019 in which it celebrates its’ 120th birthday.”

Looking to the future, William added: “While we continue to grow our managed estate; our tenanted pubs remain a key part of our business.

“Our long-term strategy remains unchanged as we focus on developing our people, growing the quality of our pub estate through selective acquisitions and investment schemes, and creating high-quality beers that our customers love to drink.

“We have made a steady start to 2019 and are optimistic about the long-term sustainable success of the business.”

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