New managed houses boost Brakspear performance
Henley-based pub operator and brewer Brakspear has seen a 12% rise in revenue in 2014, thanks largely to growth in its fledgling managed house division.
J T Davies & Sons, the parent company of Brakspear, increased turnover to £19.9 million during the year. Growth in its managed houses rose by £2.1m to £3.6m.
The company also saw a 1% uplift in drinks volumes across the total estate.
Brakspear expanded its managed division to four sites during 2014, with the lease buy-back of the Chequers in Marlow in September. It also completed a major refurbishment of the Running Horses near Dorking. The managed estate, founded in March 2013, now stands at five sites, following the purchase of the George at Shipston-on-Stour in 2015.
Operating profit before the cost of the lease buy-back increased by 8% to £5.8m, and profit before tax and exceptional items was up by 20% to £4.2m.
As part of its pub disposal programme, Brakspear sold seven pubs during 2014, the same number as were sold in 2013, meaning the company has disposed of close to 10% of its estate over the last two years. In addition, the old JT Davies Group head office in Croydon was sold last year to the local authority for redevelopment as a school, which, with the pub disposals, generated an exceptional profit of £2.4m.
Brakspear invested a total of just over £3m in its pub estate during 2014, including the acquisition of the Henley Brewhouse, renamed as the Station House. Some of the pubs to benefit from refurbishments and "sparkles" included the Victoria in Barking, the Joker in Brighton, the Bowler in Clerkenwell, the Plowden Arms near Reading and the Fox & Hounds, Unicorn, Golden Ball, Red Lion and Pachangas all in and around Henley.
Chief executive Tom Davies said: "2014 was an excellent year for Brakspear. We grew our managed division, continued with our disposal programme and acquired a cracking new pub in our home town. At the same time, we started to see a step change in the quality of our pubs and the operators who make them successful, as a result of our investment in design, marketing and tenant recruitment over recent years.
"Above all, the results for 2014 validate our business strategy over the last few years and put us on a strong footing to grow both our tenanted and managed house estates. We will continue to invest in our pubs, our people and our operators to ensure that we continue this success."
Pictured: Brakspear finance director David Nathan and chief executive Tom Davies
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