‘Mixed progress’ for Brewhouse & Kitchen

Brewhouse & Kitchen has reported “mixed progress” for its full year results ended 30 September 2023. Like-for-like sales were down 0.9%, but up 2.3% against pre-Covid trading in 2019.

Group turnover was up 2% to £16.7m, while the business reported an operating loss of £700,000 down from £2.1m in 2022 and a pre-tax loss of £1.2m, down from £2.3m in 2022.

The company, which is the UK’s largest brewpub, said the craft beer category is still growing and sales of its own-brewed beer remained strong, but food sales were impacted by consumers tightening their spending amid the cost of living crisis.

The business has 22 sites across the UK and noted that its latest freehold brewpub in Chelmsford is performing well and adding “significant value” to the company.

Over the year the company “took a number of pragmatic and innovative decisions” to lower head office costs, which involved the reduction of a number of roles, including the removal of the operations director position and reducing operational managers from three to two, as well as other job cuts across HR, sales, business support and marketing.

It stated that 2024 continues to be challenging, but the business remains optimistic and is conducting a strategic review to identify the “optimum way to create liquidity for our investors”.

Kristian Gumbrell, director of Brewhouse & Kitchen, said: “The company has a strong management team, a high-quality estate that is being continually enhanced, and a strong balance sheet.

“The bank has been very supportive in agreeing to extend a term loan due in September 2023 initially through to September 2024. At the same time, negotiations are being held to extend this facility by a further period whilst also looking to increase the size of the loan as part of a wider refinancing package. 

“Should this not proceed, the directors have other vehicles for releasing cash and are therefore confident, in this scenario, that the company would be able to continue as a going concern. Post year end, the company completed a rights issue to raise funds for its next stage of growth.”

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