Hawthorn remains profitable despite disruption

NewRiver REIT’s six month results have been announced, including the performance of its community pub company, Hawthorn.

The pub division, which is changing its name to ‘Hawthorn: The Community Pub Company’ from ‘Hawthorn Leisure’, was profitable and cashflow positive in the first half of its financial year, despite the significant disruption of Covid-19.

Its community and suburban pubs have proven to be very resilient and sustainable, bouncing back quickly after the first national lockdown. The business returned to profitability within four weeks of pubs reopening.

Hawthorn provided £3.8m of rent support in the half year and is investing £7.5m in CAPEX this year. Reflecting the same proactivity, 86% of operating partners invested in their pubs during the first lockdown.

The pub business has said that is confident that with the experience gained, the company be well placed to return to profitability and normalised levels of trading when restrictions eventually end.

“Despite the obstacles facing the hospitality sector, Hawthorn remains a strong and stable business: occupancy is high, our community and suburban pubs were well placed to bounce back after reopening in July, and we remained profitable in the first half of our financial year,” says Mark Davies, CEO of Hawthorn. “With further challenges imminent and in the shape of local lockdowns, our priority is to support and protect all of our people, protect the business and plan for the future. We will continue to support our pub partners and operators, and we will use the next three months to invest in the business so it’s stronger than ever when restrictions begin to lift in spring next year.

“Throughout the pandemic, our teams have been incredible, providing our pub partners and operators with support, reassurance and somebody to talk to. We’re enormously proud of our company culture, the community of people we work with and the pubs we operate. Our ambition is to be the number one community pub company, and next month we will rebrand to Hawthorn: The Community Pub Company, putting our purpose right at the heart of our business for everybody to see.”