New World Trading Company, the Graphite-backed pub group, has been named the fastest growing company in the UK eating and drinking-out sector over the past year.
The Chris Hill-led company has topped this year’s AlixPartners Growth Company Index a year after it debuted on the list.
The currently 21-strong group, which plans to add six sites per year going forward, generated a compound annual growth (CAGR) of 66.7%.
The winner of the Index, which sees MCA partner with leading advisory firm AlixPartners, was revealed at the Retailers’ Retailer of the Year awards ceremony last night.
NWTC generated its £4.1m of profit off a turnover £40.1m in its most recent financial year – to March 2017. The Botanist operator has risen four places since its first appearance on the list.
The company reached the top spot ahead of two new entries to the list. Second-placed MW Eat, the Masala Zone operator, reported a CAGR of 63.2% with a profit of £3m off a turnover of £25.9m, while Rosa’s Thai generated a CAGR of 59.8% and a healthy £1.4m profit off an £8.2m turnover. Last year’s winner Turtle Bay was in fourth place.
The rest of the top ten consisted of Giggling Squid, Hawthorn Leisure, All Star Leisure, Loungers, Banana Tree and Three Cheers Pub Company.
The latter was one of the biggest climbers on this year’s list – up 13 places on its position last year. The most improved company in the top 50 was Amber Taverns, which leapt 25 places to number 14. The biggest faller was Boston Tea Party – down 41 places.
Hawthorn Leisure’s debut on the list in sixth position underlines the strength of wet-led business in the current climate, as does the preponderance of pub groups in the top 50.
There were 13 new entries to the list this year, exactly the same as last year. There were nine re-entries.
A full list of winners will feature in this month’s print edition of MCA.
Comment from AlixPartners managing director Graeme Smith
The latest AlixPartners Growth Company Index has identified a new breed of operators that have captured a slice of the UK eating and drinking out market. In this edition, 26% of the top 50 feature in the Index for the first time – equalling last year’s record – which is reflective of the influx of exciting new businesses that are competing for a slice of the UK eating and drinking out market.
This year’s winner, The New World Trading Company, has topped the Index after finishing in the top 10 in the two previous years. It delivered 66.7% Profit Growth over the last three sets of accounts, with Profit of £4.1m on sales of £40.1m in its latest year. These figures demonstrate that its myriad awards and accolades in recent years have translated to outstanding financial performance.
Sustaining consistent levels of Profit growth remains challenging, particularly given the well-publicized headwinds facing the sector. However, successful management teams have continued to deliver strong results, with an average 2-year Profit CAGR of 24.3% across our cohort. We note that the latest financial periods in our index cover year ends approaching late 2016 and early 2017 - it is likely that this average could drop next year as financial and operating challenges continue to bite.
That said, there still remains a group of operators that have featured in all seven editions of the Index – effectively growing Profit for eight consecutive years. These ‘ever presents’ are a broad church of food-led and drink-led operators and include family owned, privately owned and private equity backed businesses spanning smaller concepts to nationwide behemoths. This diversity shows that many concepts have the potential to keep driving Profit growth. The key is a strong offer that resonates with consumers, alongside management with entrepreneurial flair and – as is often underestimated – operational and financial discipline.
