Mon 10th Jun 2024 - St Austell reports record turnover of £229.5m, operating profit up 15% to £13.2m St Austell reports record turnover of £229.5m, operating profit up 15% to £13.2m: South west brewer and pub company St Austell Brewery has reported revenue increased 9.7% to a record £229,481,000 for the year ending 31 December 2023 compared with £209,153,000 the year before. Despite challenging trading conditions for the hospitality industry, the company grew its underlying operating profit by 15% to £13,163,000 (2022: £11,426,000). The company generated £20.7m of underlying Ebitda before other items (2022: £18.1m), resulting in underlying Ebitda conversion increasing to 9.0% (2022: 8.7%). Underlying profit before tax was £9,449,000 (2022: £9,360,000) and overall statutory profit before tax was £7,997,000 (2022: £19,194,000), mainly as a result of the increase in interest rates. The group said it saw particularly strong sales growth in its 44-strong managed division, up a total of 18% to £72.3m. Its national off-trade was up 11% to £23.7m and its free trade was up 7% to £94m. These increases were partly offset by a 6% fall in sales within its national on-trade business and a 6% fall in rents from its leased and tenanted estate, although this was mainly due to the sale of 16 pubs to Red Oak Taverns. During the period, St Austell invested £16.9m in capital expenditure and a further £6.9m on acquisitions. This included the acquisition in May 2023 of the renewable lease of the Crabshell in Kingsbridge and in September the purchase of the Bath Pub Company, which operates four sites in the city. In March 2023, the company entered into a joint venture with the directors of ETM Group to launch premium sports bars across the south of England and Wales. The first site opened in May 2023 as Ludo Sports Bar & Kitchen at the former Graze site in Bath and having proven the concept, it is looking to identify and secure additional sites in target locations. In March 2023, St Austell completed a refinancing of its debt facilities, which provided new revolving credit facilities totalling £85m. until March 2027. The group increased these facilities in March 2024 to £93.5m. These increased facilities have also been extended by a further year and now do not expire until March 2028. Net debt during the period increased £6.2m to £70.7m. Chief executive Kevin Georgel said: “2023 was a year in which we made significant progress against our ambition to release the full potential of the business. We have continued to invest in our people and our high-quality pub estate, while future-proofing our beer brands and drinks portfolio. As a result of this continued investment, and the contribution of our dedicated and talented teams, I am confident we are delivering great experiences for our customers all year round, and this is generating strong profit growth. Throughout the year, inflation reduced from the peak of 2022, but cost challenges in our sector continued. Considering these sustained headwinds, we are pleased to report a 15% increase in profitability, in addition to delivering record revenues for a second consecutive year. These results are testament to our all of our teams as well as our tenanted business partners. With the cost-of-living continuing to impact people across the country, we remain committed to delivering excellent value. We are, first and foremost, an experiential business and it is our ambition to exceed the expectations of every guest, whether they’re visiting one of our pubs or drinking one of our beers. Our financial performance compares strongly with the market, and we remain a profitable, strongly cash-generative business with a clear strategic direction. We are focused on continued growth, harnessing the momentum we’ve built and diversifying our offer – where appropriate – to ensure that the business evolves positively and remains fit for the future.” As a result of the performance, the company return the dividend to the level it was pre-covid, paying total dividends of £1.63 a share (2022: £1.43 per share). St Austell features in the Premium Club Turnover & Profits Blue Book, the next edition of which will be released on Friday (14 June) and will feature 926 companies. St Austell’s turnover of £229,481,000 is the 50th 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.