JT Davies & Sons, the parent firm of Henley-based pub firm Brakspear, has seen a double-digit increase in turnover thanks to strong sales from its growing managed house division.
Turnover for the year ending 31 December 2016 was up by 14% to £25.5m, while pre-tax profit increased 33% to £6.6m, thanks to the disposal of three sites during the year. EBITDA was up 1% to £8.3m.
Brakspear said that sales in its managed division drove the rise in turnover, with sales in that arm of the business increasing by £3.1m to £8.8m, while turnover in the tenanted and leased estate, which currently stands at 123 pubs, was flat as compared to 2015.
The managed business comprises nine pubs, with three new openings planned within the next 12 months.
During 2016, Brakspear acquired the Grapevine Hotel in Stow-on-the-Wold for the managed business, reopening it after a major investment as the Sheep on Sheep Street, a bar and restaurant with 22 bedrooms.
The company also refurbished the George Townhouse at Shipston-on-Stour, as well as changing its management team.
Within the tenanted and leased estate, Brakspear recently exchanged contracts on one pub. Of the three pubs it sold, two had been closed for a long time, while the third was bought by a local residents' group.
Brakspear invested a total of £6.9m in its pub estate during 2016, including the managed house acquisition and developments.
Chief executive Tom Davies (pictured) said: "2016 was a good year for Brakspear. Our core tenanted and leased business continues to trade very well, benefitting from several years of investment in design, marketing, training and tenant recruitment. We have some of the best pubs in the tenanted and leased sector, run by some of the most talented operators."
He added: "Our managed division is contributing in line with expectation. Major investment in the people and infrastructure is allowing us to accelerate the development of this side of our business, and puts us in a strong position for further expansion. Inevitably, this had an impact on EBITDA, but it was the right decision."
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