St Austell saw each of it managed sites record revenue in excess of £1m for the first time, as it achieved a record turnover of £137.4m for the year to 2 January.
Of the overall 7.9% increase in turnover, the 25-strong managed division contributed with like-for-like total sales up 7.2%. This growth was achieved in wet, food and accommodation sales which were up 5.2%, 7.6% and 10.7% respectively on a like-for-like basis.
The average spend per head on food in the managed estate increased by 8% to £15.22. The Coastal Pub & Country Kitchen initiative has now been rolled out to eight of the outlets, and St Austell said this had helped to improve the food margin by a further 0.7% across the estate.
During the year the company invested £3.2m in the estate, including adding flats to its Samuel Jones pub in Exeter and major refurbishments of the Hope & Anchor, Hope Cove and the Masons Arms in Branscombe. During the year St Austell also transferred the Borough Arms, Bodmin to the managed estate from its tenanted arm.
The tenanted and leased estate saw total net income grow 5.8% and average EBITDA per pub up 7.1%.
During the year, the company successfully launched its Brewer & bean coffee offer within then tenanted and leased estate, beginning with the Edgcumbe Arms in Cremyll. Overall, £1.4m was invested in the estate during the year.
On the acquisitions front, St Austell acquired the Chainlocker in Falmouth during the year, where it intends to carry out a major redevelopment of the site in due course as it is a key part of our growth plan in our managed estate. During 2015 it also purchased the Food for Thought on the town quay in Fowey. This site has previously operated as one of the county’s leading waterside restaurants.
On plans for the latter, the company said: “We intend to carry out a major refurbishment to create an exciting new venue that will showcase the best local food and beers. This site will also join the managed estate.
In addition to these sites St Austell acquired La Petite Maison, a restaurant next door to its own Globe Hotel in Topsham. The company is in the process of combining the two properties.
During the year it also acquired Head Weir House in Exeter. This is a residential property situated next door to the Mill on The Exe. St Austell intends to incorporate the extensive grounds of the house into the pub garden and will consider in the future converting the residential property into letting accommodation for the pub.
The last site purchased during 2015 was the Puffing Billy at Exton which will undergo a minor refurbishment and will operate in the tenanted division.
On the brewing side, own-product sales volumes grew by 9.3% during 2015, driven by “significant growth” in the Proper Job ale and Korev lager brands. Cask ale volumes increased by 1.8% whereas packaged ale volumes grew by 28.7%. The company pointed out this was particularly pleasing when compared to the market trend for the year which saw the on-trade market decrease by 3.8% and the off trade market remain unchanged in the same period.
Will Michelmore, non-executive chairman of St. Austell said: “St Austell Brewery invested £16.6 million during 2015 on capital expenditure, of which £8.6 million was on new acquisitions. The company has also continued its investment in its production facilities and in refurbishing and improving its pubs and hotels.”
Chief executive James Staughton said: “I am delighted to report another year of significant progress in all of our operating divisions.
“Looking ahead, we have the skills and ambition to pursue future opportunities as they arise and to achieve our five-year strategy of delivering great distinctive experiences through product and service excellence and innovation.”
