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Jun 2023

Last Updated: 27/06/2023

Business

Masham brewery Theakston returns to profit

by John Plummer

| 27 Jun, 2023

Joint managing director Simon Theakston

Masham brewery T&R Theakston has reported a return to profitability in its annual report and accounts for the year ending December 31, 2022.

The family-controlled business, which has been brewing beers in Masham for almost 200 years, recorded a pre-tax profit of £18,000 for the period, compared with a £2,000 loss the previous year.

Turnover increased by 14% to £6.7 million in the same period, despite what the accounts note as a third successive year “affected by external events”.

Staff numbers grew from 28 to 30 and dividend payments to shareholders rose from zero to £100,000.

Fellow Masham firm Black Sheep Brewery was sold by administrators to London investment firm Breal Group for £5 million in May in a pre-packaged deal that left creditors owed £3 million.

Black Sheep's sales fell from £19 million in 2019 to £14 million last year, which resulted in a £1.6 million loss, with the company blaming covid and sudden rising costs.

Theakston's accounts highlight the difficulties facing brewers, which include a 40% increase in barley prices following Russia's invasion of Ukraine.

The company said it ceased all trade with Russia, which was its largest export market, following the invasion.

Covid, inflation and the cost of living crisis have also hit the sector hard.

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The report's strategic review by the directors said:

"We were forced to pass most of these cost increases on in higher prices, but pricing in the off trade did not fully recover the increased costs and hence margins in this channel were squeezed.

"While customers have been largely understanding, consumers have squeezed disposable incomes. Our pubs customers are caught between increased supplier costs, increased running costs of their own and less affluent consumers, so we are very mindful of keeping price increases to the minimum we can afford."

Theakston has changed its sales model by broadening its supply routes to the on trade and by spreading its interests beyond beer by launching a cider and whisky as well as new ales.

Simon Theakston, joint managing director of T&R Theakston, said:

“With a healthy balance sheet and secure financial arrangements, we remain focused on growing our revenue and are excited about some of the upcoming opportunities to forge new partnerships and bring innovative new products to market.

“We have made a good start to the year and, as a result, the board of directors is confident that as trading conditions continue to improve and the economy stabilises, we will see a steady improvement towards pre-pandemic levels of profitability.”

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Masham brewery Theakston returns to profit

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