McMullen reports current trading ‘strong’ but costs hitting profit levels as full-year turnover exceeds £100m for first time: Hertfordshire brewer and retailer McMullen has said current trading is “strong” but increasing costs mean it will take longer than expected for profitability to recover to historic levels. It comes as the business reported full-year turnover exceeded £100m for the first time. The company, which operates 86 managed pubs and 38 tenanted sites, said while the year ending 1 October 2022 represented “two steps forwards” after the covid years, the current financial year is expected to be “one step back”. Wet and food sales are both showing growth of more than 15% in the current financial year, “assisted by a low level of trading during December 2022 but hampered by less favourable weather so far this year”. The company said sales trends are varied within the estate “although we remain in both food covers and volume growth year to date”. In recent years McMullen has increased its London managed pub estate from two to eight sites and sales are “buoyant, well ahead of 2019”. It said there has been a softening of demand in the high streets, but this is compared with a buoyant trade period for these pubs post-lockdown. It comes as the business reported turnover of £101,427,000 for the year ending 1 October compared with £53,305,000 the previous year, but underlying profit before corporation tax was 15.1% below 2019 levels on a 52-week basis. Pre-tax profit stood at £13,376,000 compared with £5,976,000 the year before (2019: profit of £16,813,000). The company completed a share buy-back to facilitate just over 11% of the shareholding to exit the business. The remaining shareholders continued to invest strongly in the trade with significant developments at the Horse & Guardsman in Whitehall and the Cambridge Tap, a bank conversion in Cambridge. The Warbler on the Wharf, a new-build site in Milton Keynes, was opened and there were acquisitions in London and Stevenage. In 2023, the company has completed the refurbishment of the Salisbury Hotel in Hertford and is due to shortly open the Saint & Sinner, a bank conversion in St Albans. Some smaller pubs, that no longer suited the estate, have been sold but the company said it continues to seek suitable quality freehold property in the south east of England. Joint managing director Heydon Mizon said: “Currently recruitment needs are modest. The company continues to operate with low team turnover, below 77% and with full management establishment in almost all pubs. While it does feel as though we are swimming in treacle at times, we are in good shape.” McMullen features in the Propel Turnover & Profits Blue Book, the latest edition of which will be sent to Premium subscribers on Friday (14 July). Its turnover of £101,427,000 is the 71st highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.