Roadchef reports trading affected by ‘significant roadwork disruption’ on M1 and M25 motorways, expected to recover once these are lifted: Roadchef has said its trading was affected by “significant roadwork disruption” on the M1 and M25 motorways in the year to 29 December 2024 and that it is expected to recover once these are lifted. The group, which operates 30 motorway service areas across the UK, reported turnover of £247.4m for the year, down from £256m in 2023. Of this, £202.7m came from sales of goods (2023: £204.1m), £34.6m from provision of services (2023: £39.5m) and £10.1m from rent (2023: £12.4m). Total revenue of £268.1m in 2023 also included a £12m contract settlement with a lessee, “concerning the underpayment of historical contingent rent due to the group”. The group’s Ebitda dropped from £44.6m to £39.9m and a pre-tax profit of £13.4m in 2023 turned into a loss of £5.9m. It also received an £0.1m National Highways Grant (2023: nil). Director James Muirhead said: “The Ebitda result for the year is reflective of challenging trading conditions for the group, with continued economic uncertainty and cost-of-living pressures for our customers. In addition to this, trading has been impacted in the year due to significant roadwork disruption on the M1 and M25 motorways, from which the group operates a number of motorway service areas. Management expects to see a recovery to revenue as the works are lifted in 2025. The group’s trading success is highly reliant on an uninterrupted flow of traffic on the motorway network, which increases the propensity for drivers to turn into the group’s services. Severe or protracted roadworks, as such, present a risk to the group’s operations.” The group said there were more than 47 million visitors to its amenity services in the year, in addition to 2.6 million served at its drive-thrus, with approximately 78% of these visits resulting in the visitors being converted to a customer. During the year, the group added two Leon units and a McDonald’s drive-thru, as well as refurbishing its Costa Coffee units at several locations. It also agreed to lease several units at Folkestone Services, at Junction 11 on the M20, and post year end, McDonald’s and Costa drive-thrus both opened there, along with a new gaming area, in what the group said will be a “significant new strategic location”. Muirhead added: “Management continues to assess the suitability and success of the group’s catering and retail offerings and will look to make further strategic investment in the year ahead.” No dividend was paid (2023: nil). Post year end, in January 2025, Mark Fox stepped down as Roadchef’s chief executive and was replaced by Tim Gittins. Last week, Roadchef has launched its first ever farm shop, at Sedgemoor Services Southbound on the M5, which marks the company’s first venture into showcasing premium local artisan produce. Roadchef features in the Propel Turnover & Profits Blue Book, the latest version of which was set to Premium subscribers last week and features 1,138 companies. Roadchef’s turnover of £247.4m is the 52nd highest in the database. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. 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 supplier. Email kai.kirkman@propelinfo.com today to sign up.

 

Burhill Group turnover boost driven by growth of golf business and new experiential openings: Golf and leisure operator Burhill Group has said its turnover boost in the year to 31 December 2024 was driven by the growth of its golf business and new experiential site openings. The company reported turnover of £65,457,280 for the year, up from £60,863,620 in 2023. Of this, £64,291,634 came from golf and leisure (2023: £60,118,092), £379,723 from the sale of land and buildings (2023: nil) and £785,923 in rent (2023: £745,528). The company’s pre-tax profit was down from £5,773,153 to £5,654,669. Director James Conlan said: “The increase in 2024 group turnover reflects growth in the golf business from continuing investments, a full year of trading from Adventure Leisure sites opened in 2023 in Norwich, Bristol and Romford, plus the opening of a Mr Mulligans site in Hemel Hempstead in July 2024. The reduction in operating profit is due to ongoing inflationary cost increases during the year, a full year of 2024 costs at Adventure Leisure locations opened in 2023, and the opening of Hemel Hempstead in July 2024. While growth was achieved in the golf business, the overall reduction in operating profit is due to turnover increases in leisure being offset by inflationary and new openings operating cost increases. In the longer term, net earnings from new openings and reductions in energy contract prices are expected to secure future operating profit growth. The group continues to seek earnings enhancing opportunities by acquisition and business development. The group also continuously assesses opportunities to sell its stock of properties held for resale and where appropriate seeks to obtain relevant planning permissions in order to maximise the disposal value of property selected for disposal.” Dividends of £2,269,400 were paid (2023: £1,621,000). Post year end, on 17 February 2025, the group entered into a new additional lease for a period of ten years, with annual rent of £231,180 being payable. The company last week opened a new Mulligans in Guildford under its Adventure Leisure subsidiary. Adventure Leisure now has 13 Mulligans sites across the UK, while the wider Burhill Group also operates ten golf clubs alongside its Bunkers! and Ninja Warrior UK brands. The 2025 Experiential Leisure Report, the second year of Propel’s exhaustive report on the fast-growing experiential leisure market, will be published on Friday, 1 August at 9am. The report profiles the current shape of the experiential leisure market – including brands, estate size, trading type and geographical location and future trends. It includes opinion from leading players Juliette Keyte, marketing director at Red Engine, Richard Beese, co-founder of We Do Play, and Lisa Boden, partner at investor Edition Capital, and provides a detailed list of UK experiential leisure companies including key staff and Companies House information. The report includes 197 companies, marking a 10% growth in the sector since last year’s study, with 3,700 sites. The report is available for £595 plus VAT to pre-order now. Existing Premium Club subscribers can receive it on Friday, 1 August for £395 plus VAT. The report will be made available for free to existing Premium subscribers on Wednesday, 10 September at 9am. Email kai.kirkman@propelinfo.com today to order a copy.

 

Trust Inns grows turnover and profit, in advanced refinancing talks: Trust Inns, which is owned by a discretionary trust for the benefit of family members of the late Trevor Hemmings, grew both its turnover and profit in the year to 30 March 2025. The company, which owns more than 350 leased and tenanted pubs across the UK, reported turnover of £43,262,000, up from £42,010,000 in 2024. Of this, £30,132,000 came from beverage sales (2024: £29,625,000) and £9,194,000 from rent (2024: £8,343,000). The company’s pre-tax profit was up from £7,532,000 in 2024 to £7,976,000. The company made a £348,000 profit on disposal of fixed assets (2024: £3,000). Operating profit increased £1.4m to £12.8m generated through both organic growth and a number of successful site acquisitions. No dividend was paid (2024: nil). Bank loans at year end totalled £24.5m (2024: £24m), with a £30m facility available to the company. These mature in September 2026, and the company is “well advanced with negotiations” regarding new facilities for a further five-year term. Managing director Mark Brown said: “We are pleased with the performance of the business through FY25.  Trading conditions remained challenging but we are happy with the way the team and our pubs have adapted to the ongoing economic headwinds. The company will continue on its growth strategy through both acquisitions and selected disposals and is well placed to deal with these challenges whilst continuing to support our tenants.” Trust Inns, which operates 350 tenanted sites, said it looks forward to another excellent year of growth in 2025 and beyond through its ongoing acquisition programme and development of its existing estate through capital investment.