Exclusive – Inn Collection Group reports ‘incredibly robust’ current trading after turnover passes £50m: The Inn Collection Group has told Propel current trading is “incredibly robust” after turnover passed £50m in the year to 31 December 2023. “Current trading is incredibly robust especially given the nature of the economic climate at present,” chief executive Sean Donkin told Propel. “We firmly believe that a quality offering will always be key to consumer decision making in that regard. Having invested our largest amount ever into capex development over the reported accounting period, we are certain that 2023 and early 2024 were the correct times to invest into the sites we had acquired over the previous years. Welcoming 12 sites back into the group in our true operational model over 12 months certainly came with its challenges, but as they have opened and started to flourish, it has been a delight to see them trading as intended from the vision at purchase. Our new investments are trading to expectation and winning the odd award or two, but more importantly, the underlying business continues to perform well. Revenues year-to-date are up 46% on last year as the business continues to evolve. Our look forward suggests that the winter will be robust versus prior years as we adapt our offer to consider the pressures being imposed on household disposable income. We look forward to opening the two remaining sites still under development in early 2025, at which point 90% of the estate will be in our operating model, with three sites still to develop at the right time for the individual businesses.” It comes as the business, which operates circa 36 sites across the north of England and North Wales, reported turnover of £52,593,000 for the year to 31 December 2023, up from £36,358,000 in 2022. Of this, £21,381,000 came from accommodation (2022: £14,670,000), £12,091,000 from bars (2022: £8,619,000) and £19,121,000 from restaurants (2022: £13,069,000). Its pre-tax loss widened from £9,770,000 in 2022 to £13,227,000 as admin expenses rose by more than £14m. Group Ebitda rose to £4.1m from £2.6m. In April, the company extended its banking facility – which stood at £93.5m following a refinancing in May 2023 – by a further £5.3m. “At the balance sheet date, the bank debt facility was provided by OakNorth Bank, with repayment of the debt facility scheduled in November 2025,” the company said. “With the support of OakNorth and the continued support of its investors, the group plans to continue to build its portfolio in the coming years. In 2024, the group expects to achieve further growth in sales and Ebitda from the core established sites, and further growth in overall profit contribution from the opening and development of new and refurbished sites. A continued pipeline of acquisition opportunities is developing at the time of issuing the financial statements, all at different stages of progress. The management team and investors have increasing confidence in the potential of the existing portfolio and potential acquisitions. Potential new build sites and further acquisitions are constantly being assessed and it is anticipated that at least one further new build site or acquisition will be committed to during 2024 and the group intends to add further sites where suitable ones can be sought at appropriate levels of investment and return on an ongoing basis. In anticipation of the growth of the business, the group has added to its head office team to provide a support function to drive the business forward. As we move into 2024 and 2025, we will further embrace a scalable mindset, investing in technology-led process and customer experience improvements. The core team is now substantially in place and is having an encouraging impact on improving site profitability.” Inn Collection Group features in the Premium Club Turnover & Profits Blue Book, the next edition of which will be sent to Premium Club subscribers tomorrow (Friday, 13 September) at midday and feature 978 companies. Its turnover of £52,593,000 for the year ending 31 December 2023 is the 202nd 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.

Oakman Group HR director Jill Scatchard to speak at Propel’s Talent & Training Conference, open for bookings with 20% discount on tickets for Premium Club members: Jill Scatchard, HR director at Oakman Group, will be among the speakers at Propel’s Talent & Training Conference. The all-day conference takes place on Tuesday, 1 October at One Moorgate Place in London and is open for bookings. The conference will showcase examples of outstanding people culture among companies within the sector and how the industry is attracting talent. Scatchard will discuss how the award-winning Oakman has kept its staff retention at an all-time high, how its ongoing efforts in six core pillars of engagement – reward and recognition, information sharing, empowerment, well-being, instilling pride and job satisfaction – continue to gain it recognition in the Sunday Times Best Places to Work list, and how ensuring it provides a positive workplace and commitment to the well-being of its team pays dividends. For the full speaker schedule, click here. Tickets are £345 plus VAT for operators and £395 plus VAT for suppliers. Premium Club members get a 20% discount. Email: kai.kirkman@propelinfo.com to book places.

Adnams chairman steps down due to health reasons, Townsend steps into interim role: Jonathan Adnams has stepped down as chairman of Suffolk brewer and retailer Adnams with immediate effect due to health reasons. At the company’s last annual general meeting (AGM), he had informed members he was considering possibly retiring before the 2025 AGM. The board has unanimously agreed that Simon Townsend, will step in on an interim basis, as non-executive chairman. Townsend is already a non-executive director of the company and chair of the remuneration committee. Joining Adnams in 1975, Jonathan began his career in brewery engineering before joining the board in 1988. Appointed managing director in 1997 and chairman in 2006, he has been instrumental in driving the company forward in terms of innovation and sustainability, including its investment in energy-efficient brewing equipment and its world-class distillery. He was awarded an OBE in 2008 for his commitment to corporate social responsibility. Townsend, who joined the Adnams board in January 2023, is also chairman of Wadworth & Co, a non-executive director of JW Lees & Co, a non-executive director of Cote Restaurants and a senior advisor at global consultancy Teneo. He is also a member of the advisory board of diversity and inclusion organisation WiHTL. Previously, he has served as a non-executive director of FTSE-listed housebuilder Countryside Properties. The company said that Jonathan, whose family remains a significant shareholder, would continue to support the company until next year’s AGM. Jonathan Adnams said: “I’m saddened to be stepping down from the board earlier than planned but will of course continue to champion the business from the sidelines. Adnams has always been a lot more than just a name to me. The success of the company has been one of the biggest priorities in my life for almost half a century and I'm immensely proud of its achievements. I’m also reassured that the principles on which we built the business – integrity, charity, innovation – are as present today as they ever were. That, as ever, is testament to its people. I am very pleased to see Simon step into the role of chairman of the board on an interim basis. He has the expertise and experience to guide Adnams through its current transition and help secure a long-term financial solution to underpin its growth ambitions.” Townsend added: “The Adnams family, business and community owes a debt of gratitude to Jonathan for the contribution he's made over a 50-year career. His personal commitment to innovation – in our products through to our brewing and distilling capabilities – has been instrumental in building the foundations we continue to benefit from today. Not only that, but, as a leader, he has embodied the principles and values to such an extent that they flow through every aspect of our business today. I’m excited about the opportunities we now face and remain fully committed to securing the long-term financial solution we need to support our growth.” It comes after the business reported a pre-tax loss of £4m (2022: £2.3m) in the year to 31 December 2023, due to the aggregate impact of cost increases. It said that sales increased 3% to £66.3m (2022: £64.2m) in the period, with stronger demand in on- and off-trade channels in the second half of year. Year-on-year beer volumes rose 3% in the second half of 2023 and 11% in first quarter 2024 trading. Operating losses widened to £2.5m (2022: £1.2m) due to higher costs, while it posted a positive Ebitda of £0.6m (2022: £2.0m). In June, Adnams said it had received interest from multiple parties to fund its future growth plans.

Economy stagnated in July: The economy stagnated in July, recording a second consecutive month of zero growth. Official figures showed that the economy, after enjoying a strong start to the year, had stalled month-on-month, with growth below the 0.2% rise in gross domestic product that had been predicted by economists, reports The Times. Economic output grew by 0.5% when measured on a rolling three-month basis, dipping from 0.6% in the previous period. The disappointing performance is likely to pull down quarterly growth in the three months to the end of September, after GDP rose by 0.7% in the first quarter and by 0.6% between April and June, according to the Office for National Statistics (ONS). That was among the highest rates in the G7. The ONS said July’s weak performance reflected a decline in monthly manufacturing activity of 1%, a reduction in production output of 0.8% and a 0.4% contraction in the construction sector. The services sector, which makes up three quarters of the economy, expanded by a modest 0.1%, after falling by 0.1% in June. July’s figures coincided with the general election on July 4 and the start of the Euro 2024 football tournament, with the latter helping to boost retail sales and consumer spending.

Fever-tree reports 6% drop in UK revenue in first half of 2024, non-tonic categories gaining share and driving growth: Fever-tree, the premium tonic maker, has reported a 6% drop in UK revenue in the first half of 2024 and said non-tonic categories are gaining share and driving its growth here. The company’s UK revenue was down from £53.8m in the first half of 2023 to £50.9m in the same period in 2024. Total group revenue grew slightly from £170m to £170.6m. The company said: “Fever-Tree’s revenue declined by 6% in the UK to £50.9m, as the wider on-trade channel remained challenged, with poor weather and a soft gin category impacting performance. Despite these difficult conditions, Fever-Tree performed well relative to the category, and remains the clear number one mixer brand by value, with a higher household penetration than any other mixer brand. In the off-trade, Fever-Tree's sales were broadly flat year-on-year despite declines in the wider mixer category. As a result, we gained c.0.7% value share over the last year as we continue to be the mixer of choice for consumers. The brand also remains the clear leader of the premium segment, with a rate of sale roughly seven times faster than any other premium brand on-shelf. Despite a challenging on-trade environment over the last few years, Fever-Tree remains the largest brand by value across all mixer sub-categories, highlighting the strength of the brand for multiple drinking occasions. This is particularly important as consumer preferences continue to evolve and ensures Fever-Tree is best placed to offer solutions across the most popular serves for bars, pubs and restaurants. Innovation remains central to the brand and is supporting our growth beyond tonics in both the on- and off-trade. Rum, vodka and tequila have been the spirit categories gaining the most share over recent years and have guided our new product development towards flavoured sodas, cocktail mixers, as well as driving growth of our well-established gingers.Consequently, while our tonics remain our best-selling product, our non-tonic categories are gaining share and driving growth, increasing their sales value by approximately 10% during the first half of 2024 and gaining c.3.6 percentage points of value share. One of the most exciting parts of our innovation beyond tonics has been the introduction of our new cocktail mixers last year, which have gained good distribution at UK retail and are encouraging younger consumers to discover and purchase the brand to create more exciting drinks at home. Our marketing programmes in the UK have focused on demonstrating the versatility of the brand and how our range of mixers can be used with various spirits, or on their own. Cocktail mixers were showcased as part of an out-of-home campaign, highlighting the simplicity of creating a perfect cocktail, and we continue to use radio, podcasts and social media channels to ensure the brand remains top of mind for different social occasions.” Chief executive Tim Warrilow added: “The first half performance in the UK and Europe was impacted by unseasonable weather at the start of summer alongside distributor order phasing in Europe, but we have seen a strong improvement in these regions as the summer belatedly arrived. We’re optimistic of an acceleration of growth across the second half of the year and have seen a much more positive trading performance in July and August. Looking further ahead, our continued investment in the brand and focus on innovation in recent years ensures we are better positioned than ever to capitalise on the long-term drink trends, both in terms of continued spirit growth and premiumisation but also as adults continue to seek out a broader range of premium drinks, both with and without alcohol.”