Asked about the planned review of pub business rates announced by the government earlier this week, he said it must lead to long-term reform of the system if it is to have a tangible benefit on the sector.
“Every government in the last decade has announced a review of business rates,” he said.
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“What we need to see is some actual long term policy change.”
Davies also took umbrage at the recent announcement regarding proposed changes to the national planning system, which will see pubs in England receive stronger protection from closure and redevelopment.
‘Impossible’
“It doesn’t make sense,” he continued. “Surely [the Government] should be looking at the reason pubs are closing and why owners want to change them.
“If they were profitable businesses, they wouldn’t want to change the use, but they do because they’re being taxed so heavily that it’s impossible to make money. And in those instances, maybe we should find alternative uses for the sites.
“What I hope is that something will come of the business rates review, and the government sees some sense and stops stripping out any profit we might make.”
Davies comments come after Brakspear reported ‘another strong year of progress’ in FY25 with turnover rising 16% to £47.9m.
EBITDA before exceptional items for the Henley-based pub operator rose 6% to £11.4m, while operating profit remained stable at £7.2m.
Estate expansion
Post period end, Brakspear expanded its leased and tenanted estate with the acquisition of three pubs in Surrey from Grosvenor Pubs and Inns.
They are: The Cricketers on the Green in Pirbright, The Kings Arms in Egham, and The Duke of Cambridge in Tilford.
Davies said all three pubs have integrated well into the Brakspear estate with sales growing.
Prior to the start of the summer, The Cricketers on the Green underwent a four-week refurbishment designed to strengthen its appeal ahead of the key trading season, which has benefitted the business.
Plans are also being drawn up to invest into The Duke of Cambridge, which is expected to take place next year.
Further acquisitions could also be on the cards if the group is able to find the right sites.
“There are good opportunities out there. It’s about trying to find quality sites at the right price for a business owners and ensuring we can both get a return. That’s always the challenge.”
Across the Brakspear portfolio, which includes its leased and tenanted and managed pub divisions, Davies said trading has been ‘pretty good’ across the summer season with wet led pubs benefiting from the combination of good weather and the World Cup.
“Trading has been strong this summer. The World Cup helped the more drinks-led businesses. And while food sales and those sites with an older demographic suffered a bit as a result of the hot weather, the overall balance is that it’s been a pretty good trading season.”
- This interview was originally published on the Morning Advertiser’s sister site, MCA, here.