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Welcome Break, the operator of 35 motorway service stations with F&B outlets and hotels, has had a successful year to 31 December 2023 as operating profits rose by 7% to £72.7m.
According to the group, the year was successful in terms of overall performance, particularly in the peak holiday periods when traffic on the roads was most prevalent.
During the peak trading of the holiday period from June to September 2023, the business revealed that many sites and units broke their weekly trading records, which “evidenced the seasonality of the business”.
Outside of the peak holiday periods, motorway traffic continued to be slightly below pre-pandemic levels, which the group attributed to continued homeworking – particularly during the beginning and end of the working week.
While the group noted that the non-fuel business was impacted by high levels of inflation during the second half of 2022 and throughout much of 2023, this was mitigated by increasing selling prices.
Nevertheless, the group’s turnover at the end of 2023 was 2.2% lower year-on-year at £476.4m due to a reduction in fuel prices.
In addition, the group’s net asset position decreased by 8.2% by the year’s end to £175.2m.
The group attributed this to its capital expenditure of £9.9m, as Welcome Break opened one more Pret a Manger site and remodelled a number of stores with “a more customer friendly look and feel”.
Expenditure was also incurred in maintaining and refreshing existing assets, particularly within respect to customer toilets in the amenity buildings and the replacement of older pieces of equipment within existing catering units.
In the latter half of 2023, inflation gradually started to reduce and has continued to decline further this year, Welcome Break stated in its filings on Companies House.
Energy costs also stabilised during 2023 after displaying significant volatility in the year prior.
As a result, Welcome Break’s directors are “comfortable” with the risk moving forward, with prices now agreed with suppliers until March 2025.
