Exclusive – Oakman Group posts £18.1m loss ahead of administration process: Oakman Group has reported pre-tax losses increased to £18,133,469 for the year ending 30 June 2024 compared with £6,174,006 the previous year. Ebitda stood at a loss of £8,155,501 compared with a profit of £1,816,744 the year before. Turnover increased 2.6% to £58,897,247 from £57,808,192 the previous year. Like-for-like sales were down 2.8%, “which was behind the market”. Average net sales per week were at £1,135,000 during the period compared with £1,112,000 the prior year. Wet margins dropped 0.4% compared with the previous year while dry margins fell 0.3%. Payroll percentage was “significantly improved year on year” and was some 1.0% lower than the previous year. On a like-for-like basis, the payroll percentage improved 1.3% on the prior year. Staff turnover for the period was 56.7%. During the period, efforts were made to sell the business and the accounts revealed the only offers received were all below the total debt value, with one exception – an offer on 12 July 2024 attributing £7m to the equity. The accounts stated: “However, this was not a cash offer. It involved merging Oakman with another business and converting existing debt, including some with security over the freeholds, into equity. Securing such agreement from debt holders would have been challenging due to their security position. Subsequent due diligence revealed the proposed merger partner was experiencing declining like-for-like sales, and the deal ultimately collapsed.” In their report accompanying the accounts the directors stated: “The year has been marked by significant challenges. The group faced substantial financial pressure due to a high debt load, accumulated through an expansion strategy funded by borrowing. In addition, the legacy effects of the covid-19 pandemic, rising inflation, and the macroeconomic environment further strained the group's financial stability. While the business traded well during the financial year and saw both guest and team satisfaction scores continue to improve, the group faced considerable financial strain, primarily due to its exposure to both secured and unsecured debt held within the group. After a failed sale process that was conducted throughout the summer and autumn of 2024, in January 2025, Oakman Group completed the sale of three leasehold pubs to McMullen's, followed by the sale of ten freehold sites to The Restaurant Group during May 2025. This sale was a critical milestone in the group's efforts to address its unsustainable debt, which had reached nearly £70m. These transactions were necessary to secure a more stable financial footing for the group and to reduce the burden of the Group's debt. Following this sale, the focus shifted towards addressing the repayment of unsecured debt, including shareholder loans and bond instruments. The board continued to be in active discussions with creditors to agree on a path forward that would support the remaining sites and protect the interests of stakeholders. On 21 July 2025, Oakman Inns & Restaurants and Oakman Dev, both wholly owned subsidiaries, were placed into administration. This was a necessary step to preserve value for creditors and stakeholders, as the business could no longer sustain its debt load. PwC was appointed as joint administrator, and a pre-packaged sale of the business and assets out of Oakman Inns & Restaurants (excluding four sites) was completed to Upham Inns for £8.1m. This sale ensured continuity of operations and maximised value for creditors. Two sites held in Oakman Dev were closed on appointment. Oakman Group itself remains solvent. Following the administration of Oakman Inns & Restaurants, the intercompany receivable due to Oakman Group is expected to result in a distribution to Oakman Group, which has no external creditors.” No dividend was paid (2023: nil). Oakman features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club subscribers and features 1,151 companies. Oakman’s turnover of £58,897,247 is the 215th highest in the database. 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.