The Porterhouse hospitality group has experienced a notable financial shift following the sale of its brewery to Conor McGregor in 2023.
The move led to a €1.85 million drop in revenue last year, highlighting the brewery’s significant role in the group’s overall earnings.
Despite this, the company managed to return to profitability, signaling resilience amid structural changes.
Profits Return Amid Revenue Drop
Newly published accounts for Wavecrest Inn Ltd show that the group posted a pre-tax profit of €511,244 for the 12 months ending February 2025.
This comes after a difficult prior year, which saw a pre-tax loss of €2.7 million, largely due to exceptional costs of €2.55 million.
Director Elliot Hughes explained that the main reason for the revenue dip was the brewery sale.
“During a typical year, the brewery contributed around €3 million to €4 million, though this fluctuated in recent years,” Hughes said.
Performance of Bars and Pubs
The consolidated accounts cover Porterhouse’s Dublin establishments, including Lost Lane, Tapped, Hartys, and Porterhouse Temple Bar, as well as its London pub.
Hughes reported growth in both food and drink sales across these locations, pointing to continued strong performance in late-night trading.
The group’s own beers, Guinness, and Dingle Gin & Vodka were top sellers.
Interestingly, non-alcoholic beverages are beginning to carve out a small but growing portion of the market, accounting for 2-3% of drink sales.
Hughes noted that this segment continues to expand.
Challenges in Staffing and Costs
Operating a hospitality group of this size comes with ongoing challenges.
Hughes highlighted increasing staffing costs—including pensions, sick pay, and minimum wage hikes—as major pressures on the business.
Rising energy bills and supplier price increases have also tested margins, particularly as some costs are difficult to pass on to customers.
Financial Snapshot
- Pre-tax profit: €511,244
- Post-tax profit: €302,650 after €208,594 in corporation tax
- Total revenue: €26.77 million (down from €28.63 million)
- Shareholder funds: €19.54 million, including €15.8 million in accumulated profits
- Cash reserves: €2.49 million (down from €3.49 million)
- Drink sales: €23.99 million
- Food sales: €2.78 million
- Staff costs: €5.58 million
Revenue was primarily generated in Ireland (€21.26 million) with €5.5 million coming from European operations.
Impact and Consequences
The brewery sale removed a significant revenue stream, but the group’s bars and pubs have helped stabilize earnings.
While profitability returned, the cash reduction and the need to manage rising operational costs show that Porterhouse must navigate carefully in the coming years.
What’s Next?
Hughes indicates the group will continue to focus on bar growth, particularly in food and beverage offerings.
Monitoring non-alcoholic drink trends and managing costs will be crucial.
Strategic expansions or partnerships could help offset the lost brewery income.
Summary
Porterhouse has successfully weathered a major revenue disruption, returning to profit despite challenges.
The group’s Dublin and London pubs remain its backbone, while strategic adjustments will determine how it navigates cost pressures and market shifts.
Bulleted Takeaways
- Porterhouse’s revenue fell €1.85 million after selling its brewery to Conor McGregor.
- Pre-tax profit returned to €511,244 despite a 6% drop in overall revenue.
- Food sales increased slightly, while drink sales decreased.
- Staffing, energy, and supplier cost pressures remain ongoing challenges.
- Non-alcoholic drinks are a small but growing segment of sales.
- Shareholder funds remain strong at €19.54 million, but cash reserves declined.
