Accounts for the year ended 31 December 2025 showed sales rose 8.5% to £25.5m, up from £23.5m the previous year.
Join our WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner!
Operating profit increased by 13% to £8m, while profit before tax reached £8.6m, compared with a small loss of £45,000 in 2024.
The company said the improvement was achieved against a challenging backdrop for hospitality, including higher employment and property costs.
Growth was led by wet income, which increased 16% to £14.9m. Rental income also rose to £7.2m, while machine income was up 22% to £700k. Retail income fell to £2.3m, which the company said reflected the ongoing repositioning of some sites.
Estate investment
Red Oak said 2025 was a year of consolidation following acquisition-led growth in 2024, with no new sites bought during the year.
Instead, the business invested £1.2m into its existing estate and spent £2.8m on repairs and maintenance. It also made selective disposals of underperforming assets, with the aim of recycling capital and strengthening the business.
The company said it had continued to support tenant partners and improve operational performance across the estate.
Its leased and tenanted property portfolio was valued at £117.3m at the year end, up from £111m in 2024.
Cost pressures
The business said the most significant cost pressure during the year came from measures announced in the Autumn 2024 Budget and implemented from April 2025.
It pointed to higher employer national insurance contributions, the increase in the national living wage and the reduction in business rates relief for retail, hospitality and leisure businesses.
Red Oak said those changes represented a material increase in employment and occupancy costs across the sector, affecting the company and its tenant partners.
The company also warned that consumer confidence and discretionary spending remained key risks, alongside inflation, geopolitical uncertainty and elevated borrowing costs.
However, Red Oak said it remained well positioned, supported by stronger reserves, cost control and operational efficiency.
The company said it would continue to invest in its portfolio and look for strategic acquisitions to support future growth.
