New figures show how far the Everards family brewery has had to go to support its pub estate during the pandemic.
The latest accounts show the company saw its turnover of Â£ 30million in 2019 fall by 38% in the year through September 30, 2020.
Everards also reported an operating loss of Â£ 1.2million in its final year, compared to an operating profit of over Â£ 4million the year before.
During the pandemic, the company forgave millions of pounds in rent to support its estate of more than 160 pubs.
He said that thanks to this and other support, none of his pubs had closed permanently, although he sold 14 ads to the Hawthorn pub company in May.
Everards also said he has claimed almost Â£ 700,000 in government leave payments to support his core team of 73.
Throughout the pandemic, the company continued with plans for a new brewery, new headquarters and brewery that just opened at its Everards Meadows site, near junction 21 of the M1, to the south. from Leicester.
He also announced plans to build a 50- to 80-room hotel in Everards Meadows and create a mixed âcampusâ, with up to seven new buildings, set around a tree-lined plaza. Occupants could include commercial, educational or healthcare users.
The company said nine months after the start of its current fiscal year, it was coming out of extended trade restrictions and reduced revenues, with all pubs rented and commercial, and hoped the final restrictions could be lifted from the 19 July.
Everards chief executive Stephen Gould said: âBusiness owners have received financial support from the government throughout the pandemic.
âThis has taken the form of subsidies, rate reductions, VAT reductions (on food and non-alcoholic drinks) and holiday support.
âBounce loans of up to Â£ 50,000, with no interest or repayment for 12 months, have also provided much needed cash support to around half of our advertising area.
âA combination of the resilience, innovation and commitment of our business owners to their communities, along with the support of Everards and Her Majesty’s Government, has ensured that 100% of the pub is fully let. “
He said that in response to the impact of pub closures during the pandemic:
– Everards secured a Â£ 5million Coronavirus Business Interruption Loan (âCBILSâ) program in May 2020, through Lloyds Bank, at a low six-year interest rate;
– Its core team of 73 had all kept their jobs, with almost Â£ 700,000 claimed under the leave scheme until the end of April 2021;
– The company has decided that no dividend will be paid for the fiscal year ended September 30, 2020;
– Everards owners had received rent cancellations, advice and other support from the company – with 73% of the roll of rents canceled in the 12 months to March 2021;
– A review of the pub estate had prepared the company for future investments in pubs, properties and the 90-acre Everards Meadows site;
– Continued an ongoing review of cost reduction measures for non-core operating overhead and central costs, to help save money.
Mr Gould said the support from CBILS was in addition to existing Lloyds funding totaling Â£ 35million – in the form of a Â£ 20million revolving credit facility and a Â£ 15million term loan.
In addition, he said the group had a Â£ 1million overdraft facility which was renewed on the same terms at the end of April.
He said: âThe company has continued to invest in a new home based in Everards Meadows.
âLaunched in June, the purpose-built development houses Everards offices, breweries (main and pilot), a boutique and a brewery.
âThis new development will complement the existing bike shop and cafÃ© on site – two buildings owned by Everards that have been marketed very successfully since their launch in 2019.
âA public park (on 72 acres of company-owned land) has also been created and very well received since it opened also in 2019.
âAn additional 6 hectares will be developed on-site with Everards submitting a planning request in the spring for a mixed-use project comprising a hotel, offices and bespoke buildings providing education, health and wellness.
âThe directors were pleased to announce that the financial statements have been prepared on a going concern basis. “