JT Davies & Sons Holdings Ltd, parent company of pub operator Brakspear, has reported a 7% increase in turnover for the year ending 31st December, 2024.
The Swan Inn, Chiddingford, one of three pubs purchased by Brakspear during the last financial year
The company reported turnover of £41.3m, accompanied by a 2% decline in adjusted EBITDA at £10.7m. It also reported underlying profit before tax at £7.5m, adjusted for an impairment charge totalling £0.7m, which compares with £7.4m the previous year.
Turnover was up from £38.6m in 2023, benefiting from growth across all areas of the business, including the full-year effect of The White Bear, Warlingham, part of its Honeycomb Houses managed division.
The conversion of sales growth to profit growth proved more challenging, with operating costs increasing significantly because of government policy, inflationary pressures, and world events.
“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,” said Brakspear chief executive Tom Davies.
“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, up £3.5m on the previous year. This included the refurbishment of The Egypt Mill in Nailsworth, and the acquisition of three new pubs added to its leased and tenanted estate: The Swan Inn in Chiddingfold, The Rose & Crown in Upper Farringdon, and The George in Maulden. During the year, the business sold The Horns at Crazies Hill, near Henley.
Post year-end, the business acquired The Redesdale Arms, Moreton-in-Marsh, with 35 bedrooms, and The Kings Head, Cirencester, with 64 bedrooms. 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.”
