Slimmed-down Hydes back in profit
HYDES, the family-owned North West brewer, which in late 2012 swapped Moss Side to move to a new brewery in Salford, has reported a return to profitability after significant restructuring.
The managed pub operator said it is looking for “high quality” acquisitions in the region, and is also set to trial a value food concept, chairman Peter Johnson revealed.
In the year to March 31 2013, Hydes, now based on Kansas Avenue, Salford, swung back to pre-tax profit, reporting a £1.4m surplus, compared with a £2.7m loss in 2012.
Following the sale of its free trade business to larger regional player Thwaites and other restructuring, annual turnover fell from £23.2m in 2012 to £16.9m.
Mr Johnson said: “Following the restructure, the business is now far more streamlined and very focused on the development of the company’s pub estate.
Welcoming the reduction in the last Budget of a cut in beer duty and the abolition of the beer duty escalator as a “small but welcome step” to help reverse the damage that “astronomical” increases in tax have had on Hydes and other brewers, he added: “Having sold the free trade operation, closed the old Queens Brewery and opened our new cask brewery in the last 18 months, we are now able to place greater focus on the operation of the company’s pubs.
“We accordingly expect to achieve a healthy increase in profitability”.
NewLy-filed accounts at Companies House also reveal the departure of marketing director David Safiruddin as part of the restructuring of the company. He left last summer to launch his own consultancy.
During the year Hydes invested £1m upgrading and refurbishing its pubs and made £729,000 from selling pubs. It spent £704,000 on the new brewery, called The Beer Studio – due to its proximity to MediaCity, and invested £1.4m on the brewery plant, fixtures and fittings.
