Everards Reports Strong 2025 Performance and Prepares for Sector Headwinds

Everards Brewery Limited has announced a strong financial performance for the year ended 27 September 2025, underlining the resilience of its business model amid a challenging economic backdrop for pubs and hospitality.

Financial Highlights

• Turnover increased to £37.9m (2024: £36.2m)

• Operating profit rose to £4.1m (2024: £2.1m)

• Adjusted operating profit up 33% to £3.6m

Growth was driven by strong trading across Everards' 144-pub estate, operated under tenanted and managed partnership models, and the continued success of the Beer Hall at Everards Meadows, which achieved £3.9m in net sales, up 16% year-on-year.

Sector Challenges

Whilst performance in the year, in real terms was reminiscent of the success last seen by the Company in 2018 (operating 19 less pubs than 2018), the hospitality sector faces mounting pressures under the Labour government:

• National Living Wage rose by an average of 6.7% in the year to April (following an increase of 9.8% the year before), with further increase of 4.1% due in April 2026.

• Business rates relief reduced to 40% in 2025/26. In the November budget whilst it was announced that the multiplier would be reduced, the removal of the discount in its entirety and the re-assessment of all rateable values effectively means that over 3-years the average rates payable of the pub estate will double.

• Alcohol duty resumed inflation-linked increases from February 2025, adding cost pressure across the drinks category with a further average increase of 3.7% coming shortly in February.

• Energy costs remain unpredictable for businesses, with no price-cap protection and wholesale market fluctuations feeding through to pub operating expenses.

• Household budgets are under pressure from inflation and rising mortgage costs, leaving consumers more price-sensitive. This translates into reduced discretionary spend on food and drink, and greater demand for value-led offers. For pubs, this means balancing competitive pricing with cost recovery, while maintaining quality and experience.

At the sharp end of these pressures are the Company's business owners, who directly absorb the operational and financial strain created by rising costs and weakening consumer demand. While the broader sector faces systemic challenges, it is the pub tenants who must manage wage increases, soaring rates, higher input costs and unpredictable utilities on a day-to-day basis. At the same time, they are expected to maintain service standards and deliver value alongside quality to increasingly price-sensitive customers, and keep their pubs commercially viable. This combination of rising overheads and squeezed margins places unprecedented pressure on business owners.

Strategic Progress

The Company continued to invest in its freehold estate, refurbishments, and digital platforms to support business owners. Reducing environmental impact continues to develop as a priority through energy-efficient refurbishments and waste reduction initiatives. These actions reflect Everards' commitment to long-term value creation and community engagement.

Leadership Transition

The financial year marked a significant leadership change, with Andy Wilson succeeding Stephen Gould as Managing Director. Stephen remains on the Board as Deputy Chairman in a non-executive capacity, ensuring continuity and strategic oversight.

Chairman Julian Everard commented:

"Everards enters 2026 with strong foundations and a clear strategy focused on long-term value creation. While cost pressures remain intense, our commitment to quality, partnership, and community ensures we are well-positioned to navigate these challenges working with our Business Owners."

Managing Director Andy Wilson added:

"Our focus for 2026 is on supporting our Business Owners through proactive cost management, tools to enhance and grow business, and sustainability initiatives through investment. We will continue to champion the pub sector and call for fairer taxation and business rates reform to protect these vital community assets."

About Everards

Everards of Leicestershire is an independent family business based in Leicestershire. Chairman Julian Everard is the sixth generation of his family to run the business since it was established by William Everard in 1849. Everards Meadows is home to the state-of-the-art brewery, beer hall and shop.

Beers:

Tiger Copper Ale (4.2% ABV) is Everards iconic beer and is the official beer of Leicester Tigers. On the bar alongside Tiger you'll find Sunchaser (4.0% ABV), Old Original (5.2% ABV) and an innovative range of Limited Edition beers in cask and craft keg are released throughout the year.

Pubs:

Everards owns more than 140 pubs across the Midlands, most of which are run as independent businesses.

For further information, visit www.everards.co.uk, search for 'Everards' on Facebook or find @Everards1849 on Instagram.

For more information:

Zoe Alonso, Communications Co-ordinator (Mon–Wed): 07850 941 426, za@everards.co.uk

Kia Ryan, Communications Co-ordinator (Wed–Fri): 07702 444 172, kr@everards.co.uk

Third-party news items are published as received for informational purposes. Publication does not imply endorsement by the Guild. Please use the contact details within the post for any enquiries.