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Fri 9th Feb 2024 - Oakman demerging Seafood Pub Company, first-half sales up 4.1% to £32m |
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Oakman demerging Seafood Pub Company, first-half sales up 4.1% to £32m: Oakman Group is demerging its Seafood PubCo division, which it acquired three years ago and had grown to 11 sites. Seafood Pub Company was founded in 2011 by Jocelyn Neve, with Oakman Group acquiring its then six-pub portfolio and intellectual property in early 2021. Since then, five further sites had been added to the business. “Seafood Pub Company is currently being demerged from Oakman and will move forward under the sole ownership and direction of Dermot King,” the group said. “Following the demerger of Seafood Pub Company, Oakman will comprise 33 trading sites and five pipeline sites. Oakman has agreed terms to purchase certain freehold interests for pubs currently operated by the company as leaseholds or under management contracts, providing an even stronger asset-backing to the business.” It comes as Oakman reported first-half group sales, for the six months to 31 December 2023, were up 4.1% year-on-year to £32.3m. Site Ebitda grew by 10.4% to £5.4m in the period while business Ebitda was up 40% to £2.4m. Oakman also reported a strong end to the first half, with sales over the Christmas trading period showing growth over the prior year. For the five weeks ending 31 December 2023, the core Oakman Inns business delivered sales of £7.7m, representing an increase of 9.5% on the prior year and like-for-like growth of 4.5%. “The positive Christmas trading had continued a trend of gradual improvement in performance, following a more challenging start to the first half driven by the unseasonably poor weather in July and August,” the group said. “In addition to delivering sales growth, Oakman has made significant progress with respect to cost reduction and profit delivery,” the group said. It has also raised £3.5m in the form of secured loan notes, principally from existing shareholders, which will be utilised to deliver continued profit growth of the underlying business and provide investment for secured pipeline sites. It said Cynergy and Santander “continue to be highly supportive”, with Santander recently extending the maturity of its facility to 2025. Team turnover has reduced to 59%, down from a post-furlough high of 82%, while 48% of its people have been with the business for a year or longer. At the same time, Oakman announces sales rose by more 6%, from £54.4m to £57.8m in the year to 2 July 2023, while Ebitda was £1.8m. Chief executive Peter Borg-Neal said: “External trading conditions remain challenging. However, I am delighted with the way the whole team has come together to deliver significant profit recovery over the past six months. The business is in great shape to meet the near-term challenges we face and to deliver significant growth in the medium-term.” Oakman features in the Propel Turnover & Profits Blue Book, the latest version of which was sent to Premium Club members today (Friday, 9 February) and has grown to 875 companies. Oakman’s turnover of £57.8m for the year ending 2 July 2023 is the 175th 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 Premium Club 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.
Sponsored message – Black Heart launches pub takeover in Twickenham: To celebrate the first of England’s Six Nation’s home matches at Twickenham this weekend, Scottish brewer and retailer BrewDog is opening “The Black Heart” pub just a stone’s throw from the stadium. In collaboration with The Scrummery, the pub, renamed “The Black Heart”, will be pouring pints of the same beer for both England home games against Wales and Ireland, as well as running sampling activity and giveaways as part of the fully branded takeover. A spokesperson said: “This supports wider activity taking place in BrewDog bars and with on-trade customers, to cement Black Heart as the nation’s favourite alternative to the current number one stout. Following its launch a year ago, Black Heart is now pouring in more than 350 pubs and bars across the UK, including Arc Inspirations, Market Town Taverns, and Market Halls, as well as its own, where it is the number four selling SKU, recruiting new users to the category, while converting established stout drinkers.” If you have a sponsored message you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.
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