JW Lees hungry for growth after 23% hike in profits
FAMILY-owned regional brewer and pub operator JW Lees is expecting another busy and positive year with £20m set aside for acquisitions.
On the back of a record and award-winning year managing director William Lees-Jones told TheBusinessDesk.com his is keen to add to build the estate with the Fylde Coast and the affluent Manchester suburb Didsbury, two areas of particular interest.
In the year to the end of March, profits rose 23% from £4.8m to £5.9m as turnover increased from £56.3m to £59.2m. During the year JW Lees invested £10.4m in buying four new pubs – and refurbishing other parts of the estate.
Mr Lees-Jones said: “We are keen to grow- we have a £10m facility from RBS for acquisitions and £10m in cash as well. We’ll start to have a serious look in the new year after the Christmas rush. We’re looking at a couple of the Bramwell sites too (the 185-strong chain that went into administration in October).
“We are not afraid of buying unloved premises – and we have bought from the big pub companies like Punch and Spirit which have been unable to invest, whereas we can and have.
“The model is very much around adding food where we can. I get the impression that as consumers have had less cash to spend they have switched to pubs from restaurants as they feel we provide better value.”
He said the rise in property values – the residential market is hotting up as a result of government measures such as Help to Buy – would be a concern.
“If asset values go up I’d be wary, particularly as fixed costs are forever increasing – energy, auto-enrolment for pensions, and so on.”
Founded by Lancashire textile merchant John Lees in 1828, the Middleton-headquartered business is now in the hands of the sixth generation, which under the leadership of William Lees-Jones is keen to grow turnover to £100m a year.
