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Wed 29th May 2024 - Admiral Taverns agrees deal to acquires 37 freehold pubs from Fuller’s for £18.3m |
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Admiral Taverns agrees deal to acquires 37 freehold pubs from Fuller’s for £18.3m: Admiral Taverns, the circa 1,500-strong, Proprium-backed business, has agreed a deal to acquire 37 freehold pubs from Fuller’s for £18.3m, to strengthen its presence in the south east. The cash sale includes a premium of £1.6m added to the gross asset value of £16.7m. The pubs, from Fullers’ Tenanted Inns Division, generated £1.3m of profit before tax for the 52 weeks to 30 March 2024. It is anticipated that the disposal will complete on Tuesday, 25 June. The community, wet-led sites span London and the Home Counties including Surrey, Sussex and Hampshire. The acquisition not only scales Admiral’s UK wide estate to over 1,420 pubs, but further strengthens its presence in the south east of England, taking its number of pubs in the region to over 300. Admiral said it has a strong track record of acquiring pubs and “unlocking new growth opportunities”, and over the past 12 months, has invested £39m across its existing portfolio, with strong support from its investor, Proprium Capital Partners. These investments have ranged from major interior and exterior refurbishments through to sustainability upgrades. Chris Jowsey, chief executive of Admiral Taverns, said: “I’m delighted to welcome our new licensees to the Admiral team, and we’re excited by the opportunity to develop these pubs in partnership together. Recent years have seen Admiral build a strong track record in delivering profitable growth across our estate, underpinned by continuous targeted investment to unlock new opportunities, supporting community pubs to thrive. These 37 pubs are an excellent acquisition for our business, increasing our reach in the south east of the UK. As 2024 Community Pub Operator of the Year, we look forward to working with licensees to develop their brand range and consumer offer to people in their local neighbourhood. Our focus on helping licensees to maximise the revenue potential of their pub will help them to build their business, whilst providing a vibrant social amenity for their community. Together, we look forward to growing the profitability of these pubs and ensuring they continue to develop as successful small businesses. Despite the complexities of the macro-economic environment, across our estate we are seeing community pubs, and specifically wet-led establishments, maintaining their popularity amongst locals as people continue to enjoy going out for an affordable treat with family and friends. Wet-led, community pubs have demonstrated real resilience over recent times, and we remain optimistic that our nurturing ethos, entrepreneurial licensees and high-quality estate continues to position the group well to be at the forefront of opportunities in our wider market.” Following completion, Fuller’s will have 154 pubs within its Tenanted Inns Division, alongside the 179 properties in its Managed Pubs and Hotels Division. It said the proceeds from the sale will further strengthen the company’s balance sheet, enabling additional investment in its pubs as well as supporting future acquisition opportunities, where appropriate. “Fuller’s is committed to owning and operating both Managed and Tenanted pubs as an integral part of the company’s future strategy,” a company spokeswoman said. “However, the company proactively manages its pub estate, continually evaluating strategic opportunities and believes that the disposal of this portfolio to Admiral allows the company to focus on the development of its retained Managed and Tenanted estates.” Fuller’s was advised on the transaction by Sapient Corporate Finance. In November, Admiral reported “strong underlying trading” across its estate in the year to 28 May 2023, helped by a “notably strong performance” from its then 177-strong Proper Pubs division, which has since grown to more than 200 pubs. The business said trading for the year was “ahead of expectations” as it reported group turnover of £182.0m (2022: £154.3m), and Ebitda of £55.8m (2022: £48.4m). That same month, Fuller’s reported a 12% revenue increase in the first half of its financial year, the 26 weeks to 30 September, to £188.8m, from £168.9m in the first half of 2022. This was driven by a strong performance across the estate, the company said, as adjusted profit before tax increased by 48% to £14.5m (H1 2022: £9.8m). Fuller’s and Admiral Taverns both feature in the Premium Club Turnover & Profits Blue Book. Fuller’s turnover of £336,600,000 for the year ending 1 April 2023 is the 32nd highest in the database. Admiral Taverns’ turnover of £182,028,000 for the year ending 28 May 2023 is the 63rd 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.
Premium Club members to receive next Multi-Site Database and videos from Excellence in Pub & Bar Retailing Conference this week: Premium Club members are to receive the next Multi-Site Database and all the videos from the Excellence in Pub Retailing Conference on Friday (31 May). The next Propel Multi-Site Database, produced in association with Virgate, provides details of 3,123 multi-site operators and is now searchable in seven main segments. The database features, 915 (29%) operators from the casual dining sector, 766 (25%) pub and bar operators, 516 (16%) cafe bakery operators, 428 (14%) quick service restaurant operators, 250 (8%) hotel operators, 194 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month and this edition includes 25 new companies. Premium Club members will also receive all the videos from the Excellence in Pub & Bar Retailing Conference. They include Stephen Owens, managing director – pubs and restaurants at Christie & Co, who sets the scene for the market, with an update on sector valuations, price expectations and what’s in store for the year ahead; plus Mark Bentley, business development director at HDI, talking about the areas where the pub sector is performing strongly and where the opportunities are for the sector to drive growth. Premium Club members also receive access to five additional databases: the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. 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.
Revolution Bars announces new AGM date as it urges shareholders to vote in favour of fundraising and restructuring plan: Revolution Bars Group – the operator of the Revolution, Revolución de Cuba and Peach Pubs brands – has announced a new date for its annual general meeting as it urges shareholders to vote in favour of its fundraising and restructuring plan. It comes after the group yesterday said it had rejected an acquisition proposal from Nightcap after concluding it is “incapable of being delivered” and said it is now pushing ahead with its restructuring and recapitalisation plan. Revolution last month set out its proposed restructuring plans, including a £12.5m fundraise and the closure of 18 sites, alongside the launch of a formal sales process. At the start of May, Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of 46 bars – said it had explored a deal for the business but hadn’t yet made an offer, while Revolution said it was “assessing a number of options” for the group. Revolution’s general meeting, which was due to be held on 2 May, will now take place on Friday, June 14. “The board strongly recommends that shareholders read this announcement in full and vote in favour of the resolutions required to approve the fundraising,” the group said. “If the fundraising is not approved, the board believes that shareholders are highly likely to lose all of their investment in the company. Having fully considered its strategic options and updated shareholders with respect to the alternative options to the fundraising and the restructuring plan, the board believes that completion of the fundraising, which would enable the restructuring plan to proceed, provides the best available outcome for shareholders and the only way for shareholders to maintain value for their current shareholdings in the company. The board therefore believes that it is therefore in the best interests of all stakeholders to approve the fundraising, enabling the restructuring plan to proceed.”
UKHospitality welcomes delay of visitor levy in Scotland until at least 2026: UKHospitality has welcomed the delay of the introduction of any visitor levy in Scotland until at least 2026. The Visitor Levy Bill, passed by the Scottish Parliament, brings to a close a decade-long debate on whether councils should have the power to introduce a levy or tourist tax. Holyrood has now decided that they should, with councils able to start considering plans on whether to explore the introduction of a levy. Leon Thompson, executive director of UKHospitality Scotland said: “This is an important moment for Scotland’s hospitality and tourism sector. UKHospitality Scotland is pleased that MSPs agreed with our members that a minimum period of 18-months for preparation, after a council formally decides to introduce a levy, be retained in the legislation. Anything less would have undermined the ability of both councils and businesses to prepare adequately for the introduction of any levy. The minimum 18-month period ensures there will not be a levy in place anywhere in Scotland until 2026 at the earliest. We also welcome the legislation’s commitment to ensuring funds raised are used to support and boost facilities used by leisure and business visitors, alongside the creation of local Levy Forums to discuss how funds should be allocated. It is now for councils considering introducing a levy to work with accommodation providers, alongside the wider hospitality and tourism sector.” Thompson said the trade body has worked with industry partners and local authorities to develop a statutory guidance to assist any council considering developing a scheme, which will be published this summer. “Charges will add additional cost to holidays for international and domestic visitors, and this will add to the competitive disadvantage Scotland currently faces,” he added. “Over and above cost considerations, if handled badly, levies will have consequences for the reputation of Brand Scotland. I urge councils to listen to the voice of business when considering the introduction of a levy. Whilst the charge will be for visitors to pay, accommodation providers will face considerable costs in preparing IT and administration systems to handle charging and taking receipt of levy payments. UKHospitality Scotland will continue to support our businesses in calling for cost recovery from councils. After all, as councils look to recover their costs in preparing to introduce a levy, it is only fair and appropriate that accommodation providers charged with collecting the tax be compensated.”
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