Geronimo Inns records loss despite sales uplift
London-based pub operator Geronimo Inns recorded an overall loss of £1.5m last year, despite a 47% increase in operating profit.
The 28-strong group saw total sales grow 26% to £22.3m with like-for-like sales up 5%. Operating profit grew to £844,381 for the year to 30 June. But an overall loss of £1.5m was recorded — down from a loss of £1.9m last year.
Geronimo added four pubs during the year — The Red Barn, Five Tuns, Betjeman Arms and The Crown.
"The London market has remained strong despite the macro economic climate," said chief executive Rupert Clevely. "It has been critical to maintain the quality of our estate and we continue to invest and refurbish our properties to keep the offer to our customers fresh."
Clevely said that its food offering had been "instrumental" in driving business with real ales also showing exceptional growth. Wine sales also continued to grow, most notably in the £15-£19 range.
Geronimo also acquired six pubs from Punch Taverns for £8.34m after the year-end in July. All six pubs acquired were refurbished and reopened within 10 weeks with all performing "above expectations".
In November, Geronimo opened the Bull in Westfield — Europe's largest shopping centre. "Trading at this location has got off to an extremely good start and continues to impress," said Clevely.
Current trading
Geronimo said that trade across its 12 freeholds and 16 leasehold pubs since July has been "exceptional". Like-for-like sales for Christmas (7 December to 3 January) were up 6% on last year with total sales ahead by 43.7%. "This is an exceptional, and indeed an industry-leading, performance," said Clevely.
Like-for-like sales to March are approaching a double digit increase on last year.
"We are delighted with this performance which would not be possible without the hard work, ingenuity and enthusiasm of all our people. We have an extremely talented and dedicated team which is delivering exceptional results.
"The World Cup presents an excellent opportunity for Geronimo which we are proactively embracing to maximise this key trading event for the industry with match-time friendly menus, additional TV monitors and private screening events in our "Club Rooms" hire offer for the duration of the tournament."
