JT Davies & Sons Holdings has reported a 7% increase in turnover to £41.3m, up from £38.6m, for the financial year ended 29 December 2024.
The company said it benefitted 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.
However, this was accompanied by a 2% decline in adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) at £10.7m. It also reported underlying profit before tax at £7.5m adjusted for an impairment charge totalling £0.7m, which compared to £7.4m the previous year.
Sales conversion
The company said 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 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 Tom Davies, chief executive.
“The cost of doing business increased significantly during 2024 and this will increase following the Government’s dreadful autumn 2024 Budget.”
The business said it invested just under £9m across its pub estate - an uplift of £3.5m on the previous year.
Investment
This investment 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.
However, post year end, the business acquired the Redesdale Arms, Moreton-in-Marsh with 35 bedrooms and the Kings Head, Cirencester with 64 bedrooms.
Davies said: “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.”
