Batemans reveals seven-figure acquisitions fund

By John Harrington, M&C Report

- Last updated on GMT

Related tags: Pubs, Summer, Stuart bateman

Batemans has announced its plans for 2014 and 2015
Batemans has announced its plans for 2014 and 2015
Batemans, the Lincolnshire brewer and pub operator, has a seven-figure sum available for acquisitions for the coming three years and also plans to dispose of nine pubs during 2014 and 2015.

Managing director Stuart Bateman told the Publican’s Morning Advertiser​’s sister title M&C Report​ that free trade sales are up 4% year-on-year during the summer period, with year-to-date sales ahead by 7%.

It follows news that Batemans saw pre-tax profits slide 29.9% to £168,135 on turnover up 4.9% to £16.2m in the 12 months to 31 January. Bateman attributed the fall in profit to more tenanted pubs taking the free-trade pricing agreement Better Buy.

This means “short-term pain for long-term gain” for Batemans as tenants receive greater margin but fewer costly tenancy changeovers are necessary as licensees want to stay longer. The fall in profits was also linked to costs related to setting up more managed pubs. Bateman reiterated plans to acquire about 15 pubs in three years for both managed pubs and houses operated under its planned ‘manchise’ hybrid.

Regarding disposals, he said: “There are going to be two pubs sold as pubs in 2014. There are going to be three that are sold as pubs in 2015. In 2015, there will be four that we have earmarked for sale for development.” Plots of land at six pubs will be sold for development.

Bateman said the reaction to the recent, more contemporary rebranding, has been “tremendous”.

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1 comment

At long last...

Posted by Anti-Pub Self Regulation,

Another player moving into managed houses because it makes financial sense to do so. Compare this story to the Harvey's article earlier this week - what a contrast.

The most important comment in this article is that a hybrid of "the dreaded MRO" is being implemented by Batemans - "short term pain for long term gain".

At long last a CEO that shows some understanding of the market.

Sadly, I somehow doubt that Stuart Bateman will be getting a Xmas card from some of his industry colleagues for effectively ignoring the perceived dreaded consequences of the proposed statutory code in his public utterances.

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