Mon 11th Mar 2024 - Wells & Co reports ‘significant increase’ in Ebitda to £9.5m as sales up £7m to £62.3m Wells & Co reports ‘significant increase’ in Ebitda to £9.5m as sales up £7m to £62.3m: Bedford brewer and retailer Wells & Co has reported a “significant increase” in Ebitda as its sales shot up by £7m to £62.3m in the year to 1 October 2023. Its Ebitda grew from £8m in 2022 to £9.5m, which the company said “bodes well” and “demonstrates robust financial health and resilience in a competitive market”. It also said considered cost control and a focus on consolidating capital investments made in the previous year drove sales across the group. Its pub partner estate of 130 leased and tenanted pubs, which the company said “has always been the bedrock of the business”, where it provided “ongoing support across operations, food and drink marketing and more”, increased total revenue by 6%. Meanwhile, its UK managed pubs delivered a sales increase of more than £3m across the estate, with revenue from accommodation in particular growing by 25%. Group chief executive Peter Wells said: “I have been delighted to see this growth being delivered from these two critical divisions of the business. The improvement from our pub partners in particular shows their resilience and dynamism, with sales gradually returning to a semblance of normality during the post-pandemic recovery. However, we are still acutely aware of the cost pressures that the whole industry continues to face and the constant challenge to convert sales into profit. In response to this, we are doing as much as possible to provide support and offset cost increases. Just a few ways we’ve done this include holding the cost of our own brewed beer range, introducing utility saving measures in cellars as well as implementing voltage optimisation equipment, where possible installing electric car charging points to encourage increased dwell time, and lastly providing more resources to help with sales building plans.” In addition, the company’s French estate of 16 managed pubs also witnessed a substantial surge in sales, contributing £2.2m. This was primarily due to the success of France’s national team during the football World Cup at the beginning of the year and the rugby World Cup at the end. To cap off the calendar year, Wells & Co added two more pubs to its French estate in December 2023, bringing the House of Parliament and HMS Victory in Bordeaux to the group, and with further site acquisition plans for summer 2024. Wells added: “Our financial year began with political turmoil following Kwasi Kwarteng’s mini Budget, which was quickly followed by Liz Truss’ resignation as prime minister. Throughout the year we then saw inflation running at more than 10%, utility cost hikes and the cost of food up nearly 20%, alongside a rise in interest rates from 2.25% to 5.25%, which had a particular impact on mortgages and a knock-on impact on the rental market. Meanwhile, there was a backdrop of discontent with strikes undertaken by the Royal Mail, teachers and those in the NHS, with the rail strikes having a particular impact on our London pubs, as commuters stayed away. In the face of these unprecedented challenges, we were delighted to see sales improving by £7m and statutory Ebitda increasing by £800,000. Alongside this, our sustainability efforts have also helped deliver better profitability through energy saving initiatives.” While not record turnover for the company, it is its highest since selling its former brewery to Marston’s in 2017. The business changed its name to Wells & Co from Charles Wells in 2019. Wells & Co features in the Premium Club Turnover & Profits Blue Book, the latest edition of which was released on Friday (8 March) and features 889 companies. Its turnover of £62.3m is the 154th 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 Premium Club 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 kai.kirkman@propelinfo.com to upgrade your subscription.