Harrogate's Black Sheep Brewery reports successful year and sustainable growth

The Black Sheep Brewery plc has reported sustainable growth in turnover and an increase in operating profit for the year to March 31, 2018.

In its annual results, the Masham, North Yorkshire-based brewery, has announced a 3.3 per cent increase in turnover to £18.6m - in 2017, this figure stood at £18m.

As well as this, an increase in operating profit of £697k was reported from a £437k operating loss in 2017 to a £260k profit in 2018.

Rob Theakston, managing director of The Black Sheep Brewery, said: “This has been another year of progress for Black Sheep as we demonstrated our ability to adapt to the challenging market and trading conditions to deliver positive results.

“The day-to-day running of the brewery and the collaborative efforts of our team has contributed massively to this year’s success, executing the Board’s strategy to reshape and make Black Sheep even more competitive.”

In March 2018, 24 per cent of the beer Black Sheep brewed came in brands it hadn’t thought about two years ago. The positive performance has been on the back of a declining cask ale market, reportedly falling by seven per cent year-on-year.

July 2017 marked a significant moment in Black Sheep’s 26-year history as it launched its first-ever small batch craft lager, 54° North - a brand created in homage to the brewery’s hometown of Masham, which sits on the 54th parallel.

The Board is actively looking into developing a sustainable packaging solution for its bottled products, while also exploring investment in Black Sheep’s retail presence, as strategies to deliver potential long-term growth.

Andy Slee, chairman of The Black Sheep Brewery, concluded “We have enjoyed a positive year, despite varying challenges facing brewers, including the disproportionate tax burden on the sector.

“Black Sheep currently pays five and a half times more in beer duty than eBay pays in UK corporation tax which strikes me as wholly unfair. Beer duty and business rates remain the issues focusing the sectors time at present, especially in dialogue with [the] government.

“I am delighted that we have been able to meet our targets and deliver encouraging results. Our priority remains building on this positivity and delivering a sustainable future.”