Brakspear posts sales growth but blames slow profit on ‘dreadful’ government budget

Pub operator Brakspear’s parent company, JT Davies & Sons Holdings, recorded a 7% increase in turnover for the financial year ended 29 December 2024.

While sales reached £41.3m, up from £38.6m in 2023, this was accompanied by a 2% decline in adjusted earnings before interest, taxes, depreciation and amortisation at £10.7m.

The Henley-based business also reported underlying profit before tax at £7.5m, adjusted for an impairment charge totalling £0.7m, which is a modest 1% rise from £7.4m the previous year.

Turnover was at £41.3m and benefitted from growth across all areas of the business, including the full-year effect of the reopening of the White Bear in Warlingham in 2023 following a six-month multimillion-pound refurbishment.

The conversion of sales growth to profit growth proved more challenging against a significant increase in operating costs, which Brakspear blamed on “government policy, inflationary pressures and world events”.

Tom Davies, chief executive, said: “It is very encouraging that we continue to grow our business from a sales perspective, and that is because we have a stable and talented group of pub operators running our leased and tenanted businesses, and skilled, motivated teams across our Honeycomb Houses [managed division].

“The cost of doing business increased significantly during 2024 and this will increase following the government’s dreadful autumn 2024 budget.”

The business invested just under £9m across its pub estate, an uplift of £3.5m over the previous year. This investment included the refurbishment of the Egypt Mill in Nailsworth and the acquisition of three new pubs for its leased and tenanted estate: the Swan Inn in Chiddingfold, the Rose & Crown in Upper Farringdon and the George in Maulden. The business also sold the Horns at Crazies Hill, near Henley.

Post-year end, the business acquired two Cotswolds sites: the 35-bedroom Redesdale Arms in Moreton-in-Marsh and the 64-bedroom Kings Head in Cirencester, which was bought out of administration. These two purchases individually represent the largest acquisitions made by the group for a long time.

Davies added: “These two acquisitions reflect the confidence we have in our business and our people at a time when the hospitality sector is going through a challenging time. I am excited by both of these high-class assets, and we will continue to purchase great quality sites as they become available.”

The latest purchase took the group’s managed estate to 12 venues. The estate was founded in 2013 with the opening of the Bell in Henley-on-Thames. It rebranded to Honeycomb Houses in 2021.