JT Davies & Sons Holdings Limited, the parent company of Henley-based pub operator Brakspear, reported a 7% rise in turnover for the financial year ending 29 December 2024, reaching £41.3 million. Adjusted EBITDA fell by 2% to £10.7 million.
Underlying profit before tax, adjusted for a £0.7 million impairment charge, stood at £7.5 million, slightly up from £7.4 million the previous year.
Turnover increased from £38.6 million in 2023 to £41.3 million in 2024, driven by growth across all areas of the business, including the full-year contribution from The White Bear, Warlingham, part of its Honeycomb Houses managed division. However, converting sales growth into profit proved more challenging, as operating costs rose sharply due to government policies, inflationary pressures, and global events.
Tom Davies, chief executive, reflected on the year: “It is very encouraging that we continue to grow our business from a sales perspective, and that is because we have a stable and talented group of pub operators running our leased and tenanted businesses, and skilled, motivated teams across our Honeycomb Houses.
“The cost of doing business increased significantly during 2024 and this will increase following the Government’s dreadful Autumn 2024 Budget.”
The business invested just under £9 million across its pub estate, an increase of £3.5 million compared with the previous year. Key projects included the refurbishment of The Egypt Mill in Nailsworth and the acquisition of three new pubs for its leased and tenanted estate: The Swan Inn in Chiddingfold, The Rose & Crown in Upper Farringdon, and The George in Maulden. During the year, the business also sold The Horns at Crazies Hill, near Henley.
Post year-end, the business acquired The Redesdale Arms in Moreton-in-Marsh, featuring 35 bedrooms, and The Kings Head in Cirencester, with 64 bedrooms. Each of these purchases represents one of the largest acquisitions the group has made in recent years.
Davies stated: “These two acquisitions reflect the confidence we have in our business and our people at a time when the hospitality sector is going through a challenging time. I am excited by both of these high-class assets, and we will continue to purchase great quality sites as they become available.”