Portobello Starboard has reported like-for-like sales growth “consistently ahead of” its market peers, in the first quarter of 2023/2024.
The South East pub and hotel company currently owns 18 trading properties; 16 freehold, 1 long leasehold and 1 leasehold property.
It said that growth is solid across all of food, drinks and room sales, with a marketing plan in place to maintain that growth throughout 2024.
Although margins are under pressure throughout the industry, the company’s key metrics of gross margin (74.5%) and labour were both “comfortably ahead of budget on Q1.”
In the year to 30 September 2023, the company increased revenue from £12.8m to £18.1m in 2023, growth of 40%.
This includes a loss on ordinary activities before tax of £3,554,703.
Meanwhile gross profit margin hit 72.8% compared to 72.2 the previous year.
The business reported EBITDA of £631,000 compared to £711,000 in 2022.
During the year, the company invested £5.8m in capital improvements in addition to new acquisitions.
It said that closures for renovation of 16 sites impacted on revenue and EBITDA.
However, in the financial year 2024, it is operating a fully invested portfolio apart from the Old Red Lion which will take place in 2024.
The company has continued to strengthen both the operational and head office teams and says it is “well positioned for growth through further acquisitions.”
Director Malcolm Goddard noted that cost price inflation stabilises going into 2024 but that an increase in costs due to inflation over the past two years has put further pressure on future costs and EBITDA.
He said that company’s strategy is to build an estate of high quality freehold and leasehold pubs and hotels in carefully selected locations in the South East, and added that “The company is actively looking at new acquisitions.”
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