RedCat Hospitality’s FY25 underlying profit expected to more than double, after transitional year: RedCat Hospitality, the recently rebranded operator of Coaching Inn Group and RedCat Independent Pubs, has said that its adjusted Ebitda is expected to more than double to circa £6m for the 12 months to 31 March 2025, on the back of a transitional 12 months, which has left it in a “more stable and strong position”. The Richard Lewis-led operator of 95 sites said that the work undertaken in the year to 31 March 2024 had “laid the foundations for subsequent transformation of the business, and return to growth and investment”. The business, which was founded and is chaired by Rooney Anand, saw like-for-like sales for the year to 31 March 2024 increase 2%, with turnover up 8% to £129.8m. Adjusted Ebitda of £2.2m for the 12 months was lower than the £3.6m recorded in the prior year, while site Ebitda was up 13% to £13.2m. The Coaching Inn Group saw sales climb 18% during the period, reflecting “strong demand for a quality-rooms-and-hospitality offer, supported by great service and standards”. The year saw the creation of a new leadership team for the company, headed by Lewis, with an objective to stabilise the business and ready it for growth. Anand, chairman, said: “During the year, and in the 12 months since, we have stabilised the performance of the business, identified the go-forward estate, secured a refinancing of the group, and returned RedCat to an agenda of investment, growth and expansion.” The company said that the significant work undertaken in the financial period to the end of March 2024 set the foundations for a successful subsequent trading period. During this time, and following a reshaping of the group’s estate, the business secured a £61m debt refinancing supported by Barclays. An £8m capital investment programme has also been deployed, with five refurbishment projects completed: The Bull in Barton Mills; The Wig & Mitre in Lincoln; as well as The Crown Inn, The Curzon Arms and The Langton Arms in the Leicestershire area. The company said that allied to this, judicious estate management and a disposal programme of non-core sites has driven up the profitability of the group. It said: “As the group closes its current financial year to the end of March 2025, all key metrics are positive and underlying profit (adjusted Ebitda) is expected to more than double to circa £6m. Revenue is expected to be £124m, reflecting disposals and a more focused go-forward estate.” In addition, Coaching Inn Group will, in the coming weeks, unveil a new flagship site – the 42-bedroom Castle of Brecon Hotel, in Powys, in the Brecon Beacons – following an extensive £3m refurbishment. The company said this will be the first development in a planned investment programme for the current year, to March 2026, and will run alongside an acquisition programme as the business seeks to further grow the Coaching Inn Group. Lewis, chief executive, said: “It is testimony to the hard work of the entire RedCat team over this reporting period and in the past year that this business has emerged in a more stable and strong position. We are incredibly excited about what the future holds for our pubs and our people and, despite the economic headwinds facing the entire industry, are confident that we are entering a period of innovation and growth for the business. When it comes to number of rooms, RedCat is now the fourth biggest pub accommodation operator with 1,356 rooms and, while Coaching Inn Group remains the jewel in our crown, both sides of the business are learning from each other. We now have in place a solid plan to ensure we keep improving. By investing in our estate; in upskilling our teams; in delivering a great food, drink and accommodation offer, and by supporting our people to provide truly great customer experiences, we are confident of success. The entire team is excited to see the re-opening of The Castle of Brecon Hotel after a £3m refurbishment next month and we will be putting a further significant investment into capex projects in the coming months. We are looking to grow this year and are already in early talks to acquire several new sites as we believe there is now momentum in the business and plenty of new opportunities for us.” RedCat Pub Company features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club subscribers and features 1,066 companies. Its turnover of £120,488,826 for the year ending 2 April 2023 is the 97th 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.