Last week, the Surrey-based pubco, which runs 11 sites and one café, reported turnover of £19.59m for FY24, down slightly from £19.96m the previous year.
Gross profit dipped to £6.57m, but margins improved to 33.6%, reflecting effective supplier management and tight cost control.
Operating profit fell to £630k (2023: £695k), while profit after tax dropped to £35k, impacted by inflationary pressures and rising costs.
Speaking to The MA about the results, Price said: “We’re almost a full year on from there, but 2024 was dominated by some disappointing spring weather; our gardens are fantastic and a bit of good weather brings people out in great volume.
“I realise it’s not the best business plan, to hope it’s sunny, but what has really helped us is all the investment we’ve done in the gardens that now means people can use them even when the weather is poor. That’s been a real positive for the business and has helped us.”
Barons invested £182k into its estate during the 2024 financial year, including refurbishments and equipment, such as new covered pods, marquees and umbrellas in its gardens.
Cost control
The company also generated £639k in cash from operations, though year-end cash balances fell to £83k, down from £773k, due to loan repayments, dividends of £209k, and higher interest costs.
A major development came in December 2024, when Barons finalised a refinancing deal with Sirius Finance to support the acquisition of the Curious Pig in the Parlour pub in Crawley, Sussex, and restructure its finances.
“That refinancing allowed us to borrow all the money to buy the Curious Pig and then we’ve funded the investment out through our cash flow this year,” Price explained.
“We also extended our café at Heather Farm and doubled the size of its internal space.
“We’ve also done a lot of work on cost control and working with our suppliers to mitigate what’s been an awful lot of cost rises in food and drink. There’s been real financial pressure, so I’m pleased with the results and that we’ve navigated all those cost pressures.”
Looking ahead, Price, who was recently elected as chair of the British Institute of Innkeeping (BII), said Barons has planned to target more freehold acquisitions, particularly sites with letting rooms, as part of its long-term strategy.
“The Curious Pig is 10 minutes from Gatwick and it’s got nine letting bedrooms, that’s a model that really works for us.
“Those selective acquisitions are definitely on the radar; we’re in good shape and the team are capable of taking on more so it’s in our sights.
Next phase
“Our café is trading really well, so we might look at more opportunities for some of those daytime type businesses.
“Barons growth has always been quite measured and steady. Post-Covid, we had a period of six years of not taking any new sites on, which was starting to feel like a really long time, so really, the short term plan is to trade well and get some more cash in the bank, which will allow us to get to that next phase of growth”, he said.
Price added the business was focused on things it can control amid ongoing economic uncertainty: “There’s an awful lot of external factors we’re not in control of, like inflation and having a Chancellor who’s a liability, but we focus on the stuff we can control, like negotiating with suppliers, to keep margins strong.
“We’re always looking to keep reinvesting and keep improving the facilities, whether that’s the gardens or the internal areas or the bedrooms.
“But there has been a lot of headwinds. Energy is still expensive, [there’s been] enormous increases in labour costs and food and drink inflation, plus business rates are still very high. There’s a lot of headwinds we are navigating, so credit to the teams for keeping on providing great hospitality, which is what it’s all about.”
Ahead of the autumn Budget, Price called for urgent reform to business rates, describing it as an “absolute priority”.
“It looks like there is going to be some success there, mainly on the basis that it can be cost neutral for the Treasury,” he said.
“The proposal to give us a discounted rate on the multiplier, is what we need, but it doesn’t actually solve the entire problem… it will be a short-term win, which is exactly the shot in the arm we need, and we’ll take that on this occasion.”
While he expressed little optimism for broader reform, Price added a reduction in VAT for hospitality would allow businesses to invest and employ more people.
