Wet-led Amber Taverns named top performing pub company in Zolfo Cooper Profit Tracker

18-Apr-2012 - Last updated on 19-Apr-2012 at 15:20 GMT

Cheers: Amber's success shows wet-led pubs are far from dead

Amber Taverns, the operator of 76 pubs in northern England, has been identified as the UK’s privately-owned pub and bar operator with the fastest profit growth — proving that wet-led community pubs are far from dead.

It was named top-performing pub and bar company from the list of 100 firms in the eating and drinking-out sector in the new Zolfo Cooper Profit Tracker.

The list has been compiled by leading financial advisory firm Zolfo Cooper and the Publican’s Morning Advertiser’s sister title M&C Report.

Amber Taverns, which specialises in running freehold, wet-led community pubs, achieved a profit growth on a compound basis of 68.9% over the past three years. EBITDA (earnings before interest, tax, depreciation and amortisation) reached £4m, with turnover at £18.5m based on 72 sites as of January 2011.

The company has typically bought bottom-end pubs for relatively small amounts and then invested a greater figure to transform them into thriving community hubs.

Managing director James Baer said: “We are delighted to have done so well in the Zolfo Cooper Profit Tracker. It is a recognition of the robustness of the Amber model and the hard work of our management team and pub operators.

“It shows that, with the right mix of investment, a good offer and an incentivised licensee, wet-led pubs can be viable businesses with sound long-term futures, delivering good returns to shareholders and providing a welcoming and comfortable facility for local communities.”

Last year Amber secured £5m in new funding from Lloyds Bank Corporate Merseyside and its private-equity backer LGV Capital, as it looks to grow to 100 sites by 2014. Baer also told M&C Report last summer that Amber is “actively pursuing” sites in the Midlands, and could eventually buy pubs in the south.

The company was fourth in the overall list, which includes restaurant operators. French brasserie firm Côte topped the main list with 225.3% profit growth. Meanwhile, 22-strong café-bar company Loungers came second in the list of pub and bar operators, with compound profit growth of 67.4%.

Earlier this month private-equity firm Piper announced it would be investing £16m in Loungers as it plans to open a further 50 sites in the next three to five years. Behind Loungers was Market Town Taverns, with re-ported profit growth of 48.9%, followed by Glendola (48.0%). All made the top 10 in the overall list.

Paul Hemming, partner, Zolfo Cooper said: “The presence of four pub groups in the top 10 is really encouraging. It shows the ability to produce stand-out and sustainable profit growth is not just the preserve of the branded eating-out groups, and with Amber Taverns at number four, it’s clear the wet-led, community pub is alive and prospering for those that know how to do it well.

“The list shows that, contrary to the over-simplistic view often expressed in the national media, there are excellent opportunities for strong businesses in all parts of the UK — not just London and the south-east.

“We are delighted to be helping to shine a spotlight on the many businesses that are thriving and believe the Profit Tracker index serves as a timely reminder that pubs and restaurants are an important part of the economy and an engine room for the recovery, for job creation and for growth.”

Read PMA group editor Rob Willock's opinion