Amber Taverns has reported financial results for the year ended 4 February 2024, with strong trading and record turnover of £110.4m.
Turnover was up 15% compared to £95.7m the previous year, with EBITDA in excess of £25m, up from £22.4m.
Like-for-like (lfl) sales rose 11.3% year-on-year, while operating profit increased to £17.6m from £15.8 the prior year.
The 171-strong community pub operator further reported ‘encouraging momentum’ during the year, underpinning continued demand for its value offer in “contemporary, well-invested and maintained pubs.”
Despite implementing some price rises during the year, trading has held up well, according to the group.
Since year end, the business has continued to perform well, with lfl sales increasing 6% in the first six weeks of the new financial year beginning 5 February.
Amber Taverns further progressed its expansion programme during the period, opening six new pubs in Skagness, Chester, Durham, Irvine, Caerphilly, and North Shields, all of which are trading ahead of expectations.
More recently, it opened in Cleethorpes and Belshill, while completing on four new sites in Derby, Bridgend, Airdrie, and Motherwell – all locations in which Amber is not yet presented. The pubs will reopen in early summer following investment and refurbishment.
In addition to continued organic investment in the existing estate, the group has an encouraging pipeline and a variety of new site opportunities, with the goal of adding 15 sites each year.
It has consistently achieved returns of more than 24% on new freehold acquisitions and has a wide range of target towns, including new geographies.
The business has benefited from long-term fixed energy contracts – with energy 100% hedged to September 2025 – and its ability to avoid inflationary pressures on food and labour due to a purely wet-led model.
The group’s exposure to the rise in National Living Wage is similarly minimal due to its operator-managed model.
Focusing solely on drink sales has enabled Amber to provide a tailored wet-led value offer, with a pint for as little as £2.50, along with live sport and entertainment.
Its estate is fully profitable, with high levels of investment into pubs in small and medium-sized regional cities, the group added.
CEO James Baer commented: ““We are delighted to have delivered another year of strong trading and operational progress which is testament to the hard work and dedication of our entrepreneurial operators and the robustness of our hybrid operating model. Demand for a great value drinks offer in friendly, well invested and well maintained, local pubs remains strong. With inflation easing, rising disposable incomes and the upcoming Euros football tournament, together with an excellent new site pipeline, we look forward to the coming year with confidence.”
