LT Pub Management, the UK's largest pub management business next to Scottish & Newcastle Pub Company, has reported turnover of £16.9m in its first 10 months.
The company, led by Billy Buchanan, was created on 19 February 2010 when it acquired LT Management Services with c.350 pubs under management from the administrator of London Town.
It now runs around 1,100 pubs, either on a lease, as temporary managed sites, under service agreements with other pub companies, Insolvency Practitioners or Banks and also on a caretaker basis.
The business reported an operating loss before depreciation and amortisation of £227k for the period up to 26 December 2010. Included within this were non-recurring administration costs of £216k, plus the costs of running sites under the agency agreement with the administrators of GRS Inns, leaving a small operating loss before depreciation and amortisation of £11k. The operating loss after depreciation of £20k and amortisation of £49k was £296k.
LT highlighted concerns about the economy among the principle risks and uncertainties for the pub trade in the year ahead. “The economic environment, particularly with regard to consumer confidence and spending, remains very uncertain and increases in VAT and duty on alcohol will put additional pressure on revenues.
“However, there are many other factors involved in the ability of individual pubs to attract customers and the group continues to work with its managers to enhance the trading potential of each site.”
The company also described the market for good managers as “very competitive”. LT continue to attract good managers as their business continues to expand.
LT’s balance sheet includes £1.7m in trade and other receivables and the company said it is “not exposed to significant credit risk”. “The majority of the debt is management fees to other pub companies that is paid after the balance sheet date at contractually agreed points.”
In the first half of 2011, LT has seen strong performance across the group, resulting from improved performance in the core business and from new business that has been added during the last few months.
