Mon 6th Nov 2023 - Oakman full-year sales rise to £70m, undergoing refinancing and plans further fundraise Oakman full-year sales rise to £70m, undergoing refinancing and plans further fundraise: Oakman Group has reported the business has seen its most profitable quarter since December 2021 as it undergoes a refinancing and plans a further fundraise to support its growth strategy. Chief executive Peter Borg-Neal said group sales for the financial year to June 2023 were 8% ahead of the prior year at just under £70m. In addition, like-for-like sales for the core Oakman Inns business were up 4.1%. However, consistent with the wider sector, Oakman’s profits for the year were impacted by inflation with site Ebitda down from £12.0m to £9.8m. Borg-Neal said the business had taken action to reduce costs including enhancing pricing policies, delivering cost reductions, refocusing training, improving employee engagement and optimising labour scheduling. The aim is to increase site Ebitda in the current year by £2.5m and reduce central overhead costs by £1.3m. Borg-Neal said: “The first quarter of FY2023-24 was the most profitable quarter since December 2021. Furthermore, we are already tracking 10% ahead of the prior year for Christmas bookings. We have also consolidated our corporate structure, which had become unnecessarily complicated since its inception more than 16 years ago and this has reduced administration and management overheads.” Borg-Neal reported that two new sites had opened successfully in the summer. The Journeyman in Gerrards Cross and The George in Ludlow are trading ahead of expectations with weekly sales (net of VAT) in excess of £60,000 and £40,000 respectively. The company’s pipeline includes two additional sites with planning permission – Bush Hall in Old Hatfield and the Beech House in Epsom. In addition, lease terms have recently been agreed for Batchwood Hall in St Albans. To assist with the development of these new sites and refinance £5m of third-party debt, Borg-Neal announced the launch of a new £10m loan note secured against the company’s substantial property portfolio. The company said it has already discussed this approach with key investors in Oakman, and strong progress has been made in relation to raising approximately £5.5m, which exceeds the threshold required to repay the bank. Oakman said it intends providing further details on this refinancing, and how it will unlock a liquidity event for shareholders for those investors who so wish, at the forthcoming annual general meeting. Chairman John Leslie said: “Peter stepped back into the role of chief executive eight months ago and has thrown himself at the challenges with vigour, determination and resourcefulness. There is no doubt that Oakman is very well-regarded in the industry as a top-quality operation and has high-quality assets. We are confident that we will deliver our long-promised liquidity event at some point in 2024 with further details to be announced to shareholders shortly.” Oakman operates 42 sites across England, 11 of which trade under the Seafood PubCo brand. Oakman features in the Propel Turnover & Profits Blue Book, the latest edition of which will be sent to Premium subscribers on Friday (10 November). Its turnover of £70m is the 114th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.