Brakspear reports strong results for 2015
September 6, 2016
Tom Davies, Brakspear chief executive
J T Davies & Sons, the parent company for Henley-based pub operator and brewer Brakspear, increased turnover for the year ending 31 December 2015 by almost 13%, to £22.4 million. Operating profit increased by 19% to £6.9m, and profit before tax and exceptional items was up by 26% to £5.3m.
Growth came primarily from the company’s expanding managed house division, where turnover increased by £2.1m to £5.7m, as well as from a 2% uplift in turnover from the tenanted and leased estate.
Brakspear continued to invest in its managed estate during 2015 with the acquisition of the George Hotel, Shipston-on-Stour and Church Street Townhouse, Stratford-upon-Avon. In addition, the Pocket Watch, Shepherds Bush transferred from the tenanted estate following a significant refurbishment. The managed estate, founded in March 2013, now stands at eight sites, following the purchase of the Grapevine, Stow on the Wold – since renamed the Sheep on Sheep Street – in January 2016.
Within the tenanted and leased estate, Brakspear bought one pub in 2015 – the Frogmill Inn near Cheltenham – and sold two – the Half Moon at Cuxham and the Sow & Pigs at Poundon near Bicester, which was bought by its long-term tenants.
Brakspear invested a total of £7.4m in its pub estate during 2015, including the managed house acquisitions and developments. Within the tenanted estate, Brakspear’s in-house property and design team has helped tenants to achieve maximum impact from refurbishments and developments.
The company’s workforce has expanded to support the growing business, with a total of 221 people employed across its head office and managed pubs.
During 2015, Brakspear continued to support the local community in and around Henley. It donated £450 to Henley in Bloom, raised from sales of its Blooming Marvellous seasonal ale; supported the second Henley Club to Pub Swim by presenting all contestants with a bottle of specially brewed Two Bells beer and holding a post-swim party at the Angel on the Bridge, and staging a second Jazz & Blues festival to showcase local musical talent.
In October 2015, Brakspear launched its first ever estate-wide charity partnership with Sue Ryder and has since raised more than £20,000 for the charity’s Duchess of Kent and Nettlebed Hospices, Charles Clore Unit in Newbury and Wokingham Day Hospice.
Chief executive Tom Davies said, “2015 really was a fantastic year for Brakspear. Investment in the managed division’s people and infrastructure enabled us to make a big step forward with this side of our business, adding two sites, each with rooms, and transferring across a previously tenanted site.
“At the same time, we continued to see a step change in the quality of our tenanted and leased pubs and the operators who make them successful, as a result of our investment in design, marketing, training and tenant recruitment over recent years.
“Our results for 2015 demonstrate that considered investment in acquisitions and pub development and refurbishment benefits the Brakspear business as a whole, as we have been able to strengthen our position to grow both our tenanted and managed estates. We will continue to invest in our pubs, our people and our operators to ensure that we maintain this success.”
He added, “I’m delighted that we have been able to support Sue Ryder, who do such incredible work locally. We’re grateful to everyone in our pubs and at head office who has contributed to the sum raised so far and looking forward to hitting our target of £50,000.”