J T Davies & Sons, the parent company of pub operator and brewer Brakspear, has reported a 3.6% like-for-like uplift in draught beer and cider volumes through its pubs for the year ending December 31, 2012. Over the same period, total turnover grew 7.1% to £16.4 million.
Operating profit rose by 12.8% to £4.6m and profit before tax and exceptional items was up by 20% at £2.7m.
Chief executive, Tom Davies (pictured), said: “We’re extremely pleased with these figures, which compare favourably to the draught volume declines recorded by many of our competitors. 2012 was a tough trading year for pubs generally, and especially for the many Brakspear pubs with wonderful gardens that sat empty during the wettest summer for a century.
“The uplift speaks volumes for the talent of our tenants and lessees, who, aided by the increased marketing, training and business support we are now giving them, were able to keep their pubs busy and profitable, despite the unpromising environment.”
Brakspear purchased five pubs during 2012, at a cost of £7.4 million, and started its redevelopment of the Bull on Bell Street in Henley, which became its first managed pub in March this year. It invested a total of £1.8m in improving its existing estate, including a major refurbishment of the Crown, in Playhatch, near Reading, and a number of projects of varying scales at other pubs.
During 2012, Brakspear also bolstered its support for pubs, recruiting a second designer to help tenants and lessees with refurbishments as well as a marketing manager to create estate-wide promotional activity and help individual business partners market their pubs. It also put in place a training programme, offering free courses on beer and cellar management, wine knowledge, improving food margins, driving footfall and using social media.
Mr Davies added: “These results reflect the hard work put in over a number of years to turn Brakspear into a fitter, more flexible business and put us on a stronger footing to go forward. This enabled us to buy five excellent pubs last year, which will enhance our estate and our financial performance going forward.”
This blog post is no originally by Wobbly Wallet but appeared on Beer Today http://beertoday.co.uk/brakspear-profit-0813/