Key facts
- McMullen's sold 30 pubs, over a quarter of its estate, in January.
- The brewery warned that "brutal" tax hikes from Chancellor Rachel Reeves are impacting profitability.
- The company cited increased business rates and national insurance contributions as key challenges.
- McMullen's reported a 9.2% rise in turnover to £134.1m and an 18.9% increase in pre-tax profit.
- Staff costs rose by over £4m, largely due to a £780,000 increase in national insurance.
Hertfordshire-based brewer McMullen's has sold 30 of its pubs, citing "brutal" tax increases from Chancellor Rachel Reeves as a significant factor impacting its business. The company warned of future profitability struggles due to successive Budgets that have raised business rates and employer national insurance contributions.
McMullen's chair Stephen Gould stated that the Treasury extracted approximately 95.5% of the cash from its business sales, adding that the company is "pincered" by government taxation and regulatory costs, alongside declining consumer disposable income due to persistent inflation. This dynamic is putting material pressure on demand and the ability to raise prices sufficiently to maintain profitability.
The decision to offload 27 tenanted pubs was partly to manage the fallout from increasing tax burdens, including a rise in inheritance tax. Despite these challenges, McMullen's reported a 9.2% increase in turnover to £134.1m for the year ending September, with pre-tax profit jumping 18.9%. However, staff costs rose by over £4m, driven by a £780,000 increase in national insurance. Total equity dividends paid were £3.3m, down from £5.2m the prior year.