Member Article

Strong start to the year has Wearside Inns eyeing further acquisitions

Wear Inns has reported a strong start to its financial year, an achievement providing a basis for the North East and Yorkshire pub operator’s latest expasion plans.

Like-for-like food sales across Wear Inns estate of 26 pubs in the first half of this financial year are up 5.4% and drink sales up 1% with the company close to completing a major refurbishment programme.

Wear Inns reported turnover of £13.2m for the year to 31 March 2015, down very slightly from £13.3m the year before. Operating profit was £1.33m compared to £1.36m in the year prior. Losses were £258k compared to £240k the year prior.

John Weir, Chief Executive, said: “Overall, we are satisfied with the performance. We have completed a number of refurbishments this calendar year which has had a small impact on trading.

“We have two more refurbishments to go – The Sun Hotel, Shipley and Old Lloyd Arms, Grimsby – and our profits are in line with budget. This financial year has started strongly with dry sales up 5.4% and wet 1%. We are still looking at acquisition opportunities in the North East and Yorkshire to grow our estate to around 30 this year.”

Wear Inns hopes to eventually own as many as 46 sites, concentrating all its activities in its heartland of the North East and Yorkshire.

Since the year-end the company has bought out one of its private investors, negotiated an increased term loan of £6m and a new revolving credit facility of £2.1m with its bank, Nat West.

Weir added: “We are in a strong position to grow. While many city centres are probably reaching saturation point, we believe there are a number of opportunities in locations across the North East and Yorkshire to acquire pubs to fit our ethos of providing great value all day, every day.”

Wear Inns recently made the Investec Mid Market 100 list, ranking the fastest growing companies in the UK with a turnover of over £10m, for the second time.

It follows the London Stock Exchange highlighting the company in its report, 1000 Companies to Inspire Britain, celebrating the country’s most dynamic and fastest-growing small and medium sized businesses.

Wear Inns, which has its headquarters in the old offices of the Castle Eden Brewery in County Durham, is the biggest independent freehold managed operator in the region in terms of volume of beer sold.

Since Weir and the company’s chairman John Sands formed Wear Inns in 2006, the workforce has grown from 105 to 265.