Brakspear reports strong results for 2014
August 20, 2015
J T Davies & Sons, the parent company for Henley-based pub operator and brewer Brakspear, increased turnover during 2014 by almost 12%, to £19.9 million. Growth came primarily from the company’s fledgling managed house division, where turnover increased by £2.1m to £3.6m, and from a 1% uplift in drinks volumes across the total estate.
Brakspear expanded its managed division to four sites during 2014, with the lease buy-back of the Chequers in Marlow in September. It also completed a major refurbishment of the Running Horses near Dorking. The managed estate, founded in March 2013, now stands at five sites, following the purchase of the George at Shipston-on-Stour in 2015.
Operating profit before the cost of the lease buy back, increased by 8% to £5.8m, and profit before tax and exceptional items was up by 20% to £4.2m.
As part of its pub disposal programme, Brakspear sold seven pubs during 2014, the same number as were sold in 2013, meaning the company has disposed of close to 10% of its estate over the last two years.
Brakspear invested a total of just over £3m in its pub estate during 2014, including the acquisition of the Henley Brewhouse, renamed as the Station House. Its in-house design team has proved invaluable in helping tenants to achieve maximum impact from refurbishments and ‘sparkles’ in their pubs. Some of the pubs to benefit in and around Henley included: Pachangas on Duke Street, Plowden Arms at Shiplake, Fox & Hounds at Christmas Common, Golden Ball at Lower Assendon and the Red Lion at Cholsey.
Chief executive Tom Davies said, “2014 was an excellent year for Brakspear. We grew our managed division, continued with our disposal programme and acquired a new pub in Henley. At the same time, we started to see a step change in the quality of our pubs and the operators who make them successful, as a result of our investment in design, marketing and tenant recruitment over recent years.
“Above all, the results for 2014 validate our business strategy over the last few years and put us on a strong footing to grow both our tenanted and managed house estates. We will continue to invest in our pubs, our people and our operators to ensure that we continue this success.”
Over the last couple of years Brakspear has become more involved in events in and around Henley. It has supported Henley in Bloom by brewing a special beer at its Bell Street Brewery, donating 20 per pint sold to the campaign. It has also supported the Henley Club to Pub Swim with the commemorative ‘Two Bells’ beer given to all finishers, and a post-swim party at the Angel on the Bridge. Other initiatives, which have also included pubs further afield, include the Bee Cause campaign, for which Brakspear brewed Honey Bee beer this year, and the Jazz & Blues Festival, which has provided a platform for local musicians.
Brakspear’s local community involvement was recognised last autumn when they took the Highly Commended place in the ‘Heart of the Community’ Award, organised by the British Beer & Pub Association (BBPA), the body that represents the majority of the UK’s brewers and pub operators.
Davies added, “Brakspear has been part of Henley for centuries and we’re delighted to be supporting these initiatives which enhance life in the town. We’re grateful to the local groups such as the Henley in Bloom committee and Henley Swim who have worked with us so enthusiastically, and look forward to a continuing partnership with them.”
Above image shows (l-r): Brakspear finance director David Nathan and chief executive Tom Davies