The owner of The Head of Steam pub chain is raising a glass to a welcome return to profit after a year impacted by Covid.
Camerons Brewery, which has 34 managed and 43 franchises around the UK, selling beers and ales brewed at its Hartlepool brewery, saw turnover and profit plummet during two full lockdowns.
However, following the lifting of restrictions it was allowed to trade outdoors from April 12 2021, and then indoors from May 17, which significantly helped with its ability to return to generating profits.
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The firm – which owns the The Head of Steam brand, eight venues as part of its Urban Country Pub Group, and most recent acquisition Bar Soba – has published accounts for the eight months to January 2 2022, in which turnover was £49.3m, more than double the £22.9m it posted for the full year to 2 May 2021. But the firm is yet to return to pre-pandemic levels of 2019, when sales reached £84m.
The previous year’s operating loss of £7.1m, however, was converted to profit of £1.44m for the following eight month period. Total comprehensive income for the period was £387,675, a significant jump from the prior year’s overall loss of £7.4m.
The accounts also show that the firm made use of furlough grants during the period, receiving £401,237, as well as other Government grants totalling £50,366. The year before it had received £3.7m in furlough grants.
Meanwhile, employee numbers rose over the eight months, from 516 to 666, working across management and administration, and in its pubs.
Directors said that, whilst trading was on an upward trajectory as Camerons progressed through the 2021 calendar, the firm was slightly derailed by the emergence of Omicron variant in mid-December and the associated restrictions reimposed on the sector just as the brewer was entering the busiest time of the year.
The firm said it was very appreciative of its supportive bankers, HSBC, and wider creditor base during the year. Pub trading is now strong across all divisions and it continues to win new contract brewing, canning and bottling business.
Camerons expects to be at a pre-pandemic normal level of gearing later this year.
CEO Chris Soley said: “We are immensely proud of the resilience our team has shown to help navigate us through the challenges that Covid has presented. Alongside the governmental support, we have worked closely with our external stakeholders to ensure we emerge from the pandemic in a position of strength and are now planning for further growth.
“The return to profit provides a solid financial platform to build upon for the future and we are delighted to once again be looking forward and investing in the expansion of our brewing and retail business.”
John Foots, finance director, added: “We are extremely pleased to report a strong set of results. The last two years has been a very challenging time for the industry and our company, and I’m delighted by the resilience our staff have shown to get us to this position. We are very grateful also to our customers, suppliers, and wider creditor base, particularly our bankers and HMRC for the faith they have shown in our business and we look forward with confidence to another successful year. Onwards and upwards!”
