The parent company of Henley-based pub operator Brakspear has reported an increase in turnover of 9% for the year ending 31st December, 2023.
The Leicester Arms, in Penshurst, Kent, which had an investment of £800,000 during the last financial year
Turnover at JT Davies & Sons Holdings Ltd was £38.6m against £35.4m in 2022.
“Our business performed very well in 2023, with a high level of stability across our leased and tenanted estate and our Honeycomb Houses managed business driving the organic sales growth,” said Brakspear managing director, Tom Davies.
Underlying EBITDA was reported as £10.9m, slightly lower than the £11.2m reported for 2022 when the company benefited from a business interruption claim amounting to £0.7m.
Tom said: “Whilst I am generally happy with our profitability levels, our profit conversion has reduced because of the well documented cost pressures which affected our customers and directly impacted the operation of our pubs.”
Adjusted profit before tax (adjusted for property revaluations and disposals) was unchanged at £7.2m in 2023.
Net debt reduced by 22% to £17m (2022: £22m), resulting from bank debt repayments during the year, amounting to £3.8m, and an increase of £1.2m in cash reserves at year end.
Tom added: “Our balance sheet grows from strength to strength, enabling us to realise our ongoing ambition to add a significant number of high-quality pubs to our [leased and tenanted] and managed portfolios.”
The company continued to invest in its estate, with £5.3m of capital and operating expenditure directed towards its pubs. This included the £1.8m redevelopment of The White Bear, in Warlingham, Surrey, that re-opened in January as the company’s tenth Honeycomb Houses site. Some £800,000 was invested in The Leicester Arms, a tenanted pub in Penshurst, Kent. In addition, there were smaller refurbishments across the L&T and Honeycomb estates.
During 2023, there were no pub acquisitions, and one sale, of The Reformation, near Reading, which had been closed for several years.
Tom said: “I am very proud of the achievements of our business partners in the L&T estate, and of the contribution from our teams in Honeycomb Houses and at head office. Together we continue to deliver exceptional results in a time of significant challenges, which we continue to face.”
On the subject of challenges, he added: “I look forward to the government delivering on its promise to reform the unfair and unfit business rates regime, which is long overdue.”
Brakspear has already purchased four quality freehold pubs this year: The Royal Exchange, Lindford, and The Rose & Crown, Alton, both in Hampshire; The Swan Inn, Chiddingfold, Surrey, and The George Inn, near Bedford. The company is actively looking for more acquisition opportunities for both its Honeycomb Houses and L&T estates.
