J T Davies & Sons, the parent company for Henley-based pub operator Brakspear, has reported a year of “positive of change”, in which it saw pre-tax profits climb 26.2% to £3.5m.
Total turnover for the year ending 31 December grew by 8.4% to £17.8m. Operating profit rose by 15.8% to £5.4m. Draught beer and cider volumes increased by 5.2% in 2013, with a like for like uplift of 2.7%.
The 2013 results are the first to include a full year’s trading for the six tenanted and leased pubs acquired by Brakspear in 2012, which all performed ahead of expectation.
They also show a partial year’s trading for the first two managed pubs, the Bull on Bell Street in Henley and the Porch House in Stow, which opened in March and September 2013 respectively. Together, they achieved £1.5m in sales and delivered expected profits, despite significant set up costs.
The company, which is on track to open its fourth managed site next month, invested a total of £2m across its managed and tenanted estate in 2013.
Chief executive Tom Davies said, “2013 was a year of positive change at Brakspear, with a sizeable increase in the support we offer to our tenants across marketing, training, business development and interior design. It is good to see that investment translate into these excellent figures, which have been delivered by busy and profitable pubs run by our talented licensees.
“These are strong results from a business in excellent health and show the benefit of our approach to running pubs. We will continue to invest in our pubs and our people where we can see the possibility of healthy returns, but, by the same token, will dispose of pubs that have become permanently unviable.
“Our estate has some of the finest pubs in the south-east, run by some of the best operators in the industry, and we are optimistic about the trading outlook for our pubs as the country moves out of recession and consumer confidence returns.”
Acquisition of new sites for both the tenanted & leased estate, and the managed house division, remains on the Brakspear agenda. Davies added: “Thanks to our healthy financial situation, we’re well placed to act quickly as and when we see pubs that will enhance our estate.”
