Brakspear eyes managed estate expansion

Davies also revealed the 145-strong company, which is “coming towards the end of a period of consolidation”, currently has 10 pubs on the market. Turnover grew 7.1% to £16.4m in 2012, with operating profit up 12.8% to £4.6m. Draught beer and cider volumes grew 3.6% on a like-for-like basis.

Davies told M&C Report​: “We’re extremely pleased with these figures. 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.”

Options open​

Brakspear opened its first managed pub, the Bull in Henley, in April. Davies said trading levels achieved when it opened over Easter have been maintained. A second managed pub, the Royalist in Stow-on-the-Wold, opens next month.

Regarding more managed openings, Davies said: “We keep our options open. I’m not going to commit to any number or method by which we may acquire them. There’s an intention to expand, we will have to see how it pans out.”

Brakspear bought five pubs in 2012 for £7.4m and Davies said there was “no aim” regarding acquisitions this year, predicting two or three “if we are lucky”.

“I don’t want to take on more debt to fund a buying spree,” he stressed. “I would rather sell 10 small pubs and buy one or two bigger ones, so we are investing in large sites in better locations.” Davies said three Brakspear pubs on its disposal list are under offer.

Investment​

Brakspear invested £1.8m in the estate last year and Davies expected “the same if not slightly more” this year.

Davies said Brakspear is “coming to the end of the period of consolidation” and is “investing in people quite heavily”. In 2012 the company recruited a second designer to help with refurbishments and a marketing manager to create estate-wide promotional activity. 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.

Davies said: “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.”