Mon 13th Aug 2018 - Peach Pubs reports like-for-likes up 2.4% Peach Pub Company reports like-for-likes up 2.4%: Peach Pub Company has reported like-for-like sales increased 2.4% for the year ending 7 January 2018. The company, which operates 20 gastro-pubs, said it had emerged from a challenging trading year in fighting form, delivering continued sales and profit growth. The business remained resilient in the face of mounting pressures from business rates, National Minimum Wage increases, and inflation. Turnover rose £600,000 to £25.6m, while group normal operations Ebitda in the 52-week period was £2.2m (2016: £2.5m), with group Ebitda up £39,000 on the year before to £2,051,581. Profit before tax and minority interests was £548,924 (2016: £523,108). Peach banking facilities consist of a £6.8m loan, £1.150m revolving credit facility and £0.3m overdraft. The company owns four freeholds, which are valued substantially more than its current debt. Net assets before deduction of minority shareholdings are currently £1,912,530 (2016: £561,733). Managing director Hamish Stoddart said: “2017 was a bit of consolidation for Peach as well as a recognition of, and reaction to, increasing costs plus the softening of the ability of guests to go out and eat. Despite those challenges, overall spend per head went up slightly, although cover numbers were down. Our bars, however, went from strength to strength; liquor sales rose 4% in the period and we reaffirmed our position as a bar-oriented gastro-pub group with a focus fixed firmly on individual menus and strong, proper pubs. In summer 2017 we played Jenga with costs, trying to remove them without causing a Jenga tower of the guest experience to topple over. This went well and in January 2018 we launched a new twist on our menus, which by May was delivering covers and profit growth. In the same period, we invested in two new pubs, Boulters Lock on the River Thames in Berkshire and The Bear & Ragged Staff in Cumnor, Oxfordshire, and successfully refurbished two others, Brookmans in Brookmans Park, Hertfordshire, and The Thatch in Thame. We had a record week during the World Cup, an event that is not usually great for Peach even when the sun shines. This year, the week was huge and we saw like-for-likes of 11% up and a record week of £641,000 for the week ending 1 July. 2019 will be a big year for Peach. We are continuing our search for the perfect investor partner and at the same time looking forward to a 17th year of profit growth alongside successful and fantastic team engagement. We aim to move a further two places up The Sunday Times 100 Best Companies list (from 43) next year as we continue to strive to make our teams’ lives even more Peachy.” The company stated: “We will continue to balance and gain perspective in the current trading conditions. Peach has a very resilient model and continues to deliver a great guest experience. Tougher consumer spending and increased pressure on tax on business will continue. Business rates for 2018 will again rise a further £100,000. Systems implemented in the prior year are giving us the opportunity to hold our margins and mitigate cost pressures. We believe in a stressed market great pubs will become available to us and have. We have opened one new pub since the year-end, with another soon to be added. We will be a 21-strong pub group by the half year. Recent trading in 2018 has started with the same tough trading conditions of the prior year, but we are seeing improvement in growth. The Bear & Ragged Staff in Cumnor was purchased on 31 January 2018.”