Managed houses drive Brakspear’s profits

During the 12-month period, Brakspear saw turnover increase by 12% to £31.8m, generating earnings before interest, tax depreciation and amortisation (EBITDA) of £8.7m, which was up 13% on the previous year.

A sales growth of £3.2m from Brakspear’s 13 managed houses was highlighted as one of the main drivers of the company’s fortunes, with turnover in the managed estate rising to £14.8m.

Tenanted and leased turnover was in line with growth in the previous year of 1.6% in like-for-like trading volumes, which was countered by the transfer of a site to the company’s managed division at the end of 2017.

Invested in T&L​

During the period, Brakspear invested in both its managed and tenanted and leased divisions, with £6.7m being pumped into both estates.

Investments included a significant sum being channelled into the business’s Frogmill pub, the largest investment yet, seeing the venue grow to 100 covers, plus 28 bedrooms as well as a wedding and conference facility for up to 150 guests.

Bedrooms were added to other pubs within the managed estate, while the company’s tenanted and leased sites also saw cash injections, including the redevelopment of the Joker in Croydon.

Chief executive Tom Davies said in a statement: “Last year met our expectations in terms of sales and profitability.”

Most talented operators​

He continued: “Our core tenanted and leased business continues to trade well. I believe we have some of the best pubs in the tenanted and leased sector, run by some of the most talented operators,” he continued.

“Our managed estate is developing nicely despite cost pressures impacting the business, it seems, at every turn.

“Investment in our people and systems is helping us to further improve service, sales and profitability.”

Future plans include continued support for tenants and lessees, including help to increase footfall, turnover and profit across the estate, he added.