Hydes cheers investment as profits leap
AN investment in a new boutique hotel in Manchester’s fashionable Northern Quarter, helped family-owned brewer and pub company Hydes grow profits by 26%.
Called The Abel Heywood (a former mayor of Manchester), the venue was opened just before Christmas 2014 in a former clothes shop. On the ground floor there is a traditional pub, on the first floor, dining facilties, while on the upper floor there are 15 bedrooms.
Chairman Peter Johnson said The Abel Heywood is already one of Hydes’ most profitable locations, has received a number of positive reviews on the Trip Advisor site and is enjoying occupancy rates of more than 80%.
Johnson hailed “another successful year for the business” as turnover in the 12 months to the end of March 2015 rose 20.4% to £22.3m and pre-exceptional operating profits rose 26.7% to £2.2m.
He said the results were evidence the group’s strategy, which includes: investing in existing sites; buying good quality freehold pubs; selling “unsustainable sites” and transferring selected tenanted houses to its managed estate, is working.
Based for many years in Moss Side, Hydes, which has been a family brewer since 1863, now has its headquarters and brewery at The Beer Studio in Salford.
During the period under review it had 29 managed and 28 tenanted pubs in the North West and North Wales.
Mr Johnson said “there is a very positive mood” around the business, and the executive team is looking for new sites to help the business continue to grow.
To fund acquisitions, Hydes agreed a £13m funding facility with Royal Bank of Scotland in autumn 2014. As of March 2015 it had drawn down £10.5m of this, while its also has a £1m overdraft facility and more than £1.1m in the bank.
