Everards reports £3.4m loss in FY21
Everards’ sales in the first two months of the new financial year improved with a performance at 96% for like-for-like trade, compared to the same period in 2019.
Everards has reported an operating loss of £3.4m for the financial year ending September 2021, along with a £1.3m loss for the year ending September 2020.
The company said that trading restrictions for nine months of the year is the reason behind the loss, which was reportedly driven by a reduction in the volume of drinks supplied to the pub estate, along with “significant” cancellations of rental income.
In the first two months of the new financial year, October and November 2021, Everards’ sales to the pub estate improved with a performance at 96% for like-for-like trade, compared to the same period in 2019.
Everards said the introduction of Plan B measures by the government in December 2021 impacted on the momentum built with sales to pubs, trading at 81% compared to December 2019 and bringing its Q1 like-for-like position down to 90%.
Stephen Gould, managing director of Everards, said that planned government support by way of grants for business owners is “appreciated” but it “does not go far enough”.
He suggests that the UK government suspends business rates for Q1 2022 for all hospitality businesses and agree to review the 2022/23 cap, prolonging the reduced rate of VAT until at least the end of June 2022, and ensuring brewers are within scope for compensation grants and rate relief.
Gould said: “Our level of pub vacancies is very low after nearly 21 months of disruption, and interest in joining our company as an employee or business owner has never been stronger.
“December is a time when our business owners build cash reserves to deal with lower trade levels in the first quarter of the new year. Due to Plan B restrictions which impacted consumer confidence, in many pubs this will not have been possible.”
