JW Lees in seventh heaven as investment levels and profits return
Family owned brewer and hospitality business JW Lees saw revenues up 9% at £96.8m (+£9.3m) and pre-tax profit up 104% to £7.1m for the year to 31st March 2024, and now has the seventh generation of the founder John Lees working in the business.
The Middleton Junction-based brewer took a hit in the previous year due to the cost of energy, significantly reduced government support and increased levels of investment in the business.
William Lees-Jones, Managing Director of JW Lees said now he has high hopes for the new Labour government, in its policies towards the hospitality sector, to family businesses like his, and overall economic management.
“It finally feels like we’re back to some form of business as usual after a roller-coaster four years with lockdowns, huge volatility in energy contracts and the cost-of-living crisis. As the song goes, ‘Things can only get better’ and we feel that JW Lees is well placed to grow our business in all three trading divisions, Managed Houses, Pub Partners and Sales. Pre-tax profit was only down £324k on 2019 pre-lockdown levels and so we are back with a spring in our step and we trust that the new government recognises the importance of the hospitality sector and that there will finally be a root and branch review of business rates and fairer rates of tax on both alcohol duty and VAT, which are among the highest in the world,” he said.
He said he will continue to support campaigns by Family Business UK to urge the Government to raise awareness and promote the family business model within policymaking.
He called for a cut in Business Rates (27%), and new policies that help owners pass their business to the next generation and for specific Family Business Minister in the Department for Business.
He also welcomed his son Louis Lees-Jones as the first of the seventh generation of our founder John Lees to join the business.
“After a successful start to his career in other hospitality businesses around the world, Louis joined JW Lees as Openings Manager after an extensive induction including spending time not just in all of the different departments of JW Lees but also visiting 20 of the UK’s independent family brewers.”
Lees-Jones also said the group is aiming for all of its pubs to have have been refurbished within the previous three years by the time of the 200th anniversary in 2028.
“While we remain keen to acquire more pubs, inns and hotels, there have been limited opportunities for us to acquire the right sites at the right price and so we are about to embark on a major investment programme in our brewery, as we approach our 200-year anniversary in 2028 as well as adding a number of new bedroom blocks to our existing pub estate. We aim for JW Lees to deliver fantastic hospitality with brewing at its heart with Managed Houses, Pub Partners and Free Trade all working together to continue to build the JW Lees brand in the North West,” he said.
The group bought one new pub during the year, The Pointing Dog in Cheadle, in June 2023 from Marston’s plc as well as carrying out CAPEX of £5.9m across 16 existing sites including the development of what was Dutton’s in Albert Square Manchester, which was re-imagined and re-opened in February 2024 as JW Lees Founder’s Hall.
The group also made a significant investment at the Rope and Anchor Woolston which is the first JW Lees Retail Agreement pub.
The group sold one property in the year, The Junction Garage in Middleton, and a small parcel of land at the Old Cock Inn, Middleton, which together generated a profit of £724k.
