The company recorded an 11% increase in turnover to £28.3m, which generated EBITDA (earnings before interest, taxation, depreciation and amortisation) of £7.7m – a 7% decline on the previous year.
The decline in EBITDA is attributed to industry wide factors such as business rates and the increasing costs of employment, in addition to significant expenditure by Brakspear on the acquisition of a new managed site and the transfer of two others (the Little Angel in Henley, Oxfordshire and the Dog & Duck in Wokingham, Berkshire) to its managed estate.
Brakspear’s 13-strong portfolio of managed houses generated £3m in sales growth – contributing to £11.8m annual turnover for the company’s managed house division – while like-for-like sales grew by £500,000, a 5% increase year-on-year.
In the tenanted and leased estate, a £200,000 decline in turnover was recorded alongside flat like-for-like sales.
Brakspear chief executive Tom Davies commented: "Last year was a satisfactory for Brakspear. Our core tenanted and leased business continues to trade well. I believe we have some of the best pubs in the tenanted and leased sector, run by some of the most talented operators.
"Our managed estate is developing in line with expectations, despite cost pressures impacting the 2017 result. We have recently invested in our managed operations teams and I am confident that this will lead to further improved service, sales and profitability.”
Portfolio investment
In total, Brakspear invested £6.9m in its pub estate during 2017.
The company added the Lion at Wendlebury, near Bicester, in Oxfordshire, to its managed estate as well as the Leicester Arms, in Penshurst, Kent, to its tenanted and leased estate.
Moreover, three tenanted and leased sites were sold during the past year as part of Brakspear's pub disposal programme.
Davies added "We continue to invest in our tenanted and leased pubs, supporting our tenants to deliver a high-quality experience, and in our managed estate, where we aim to exceed our customers' high expectations.
"I am delighted with our acquisition and development of the Lion, and the very recent refurbishment of the Frogmill, near Cheltenham, both premium sites which are adding further quality to our pub estate."