Propel Newsletter Archive Page

Adnams embarks on a programme of asset disposals to reduce company’s borrowings, current circa £15m level of debt ‘unsustainable’: Suffolk brewer and retailer Adnams has embarked on a programme of asset disposals to reduce the company’s borrowings, saying its current circa £15m level of debt is “unsustainable”. Speaking in the company’s results for the year to 31 December 2024, interim chairman Simon Townsend said net debt was £15,304,000 at the end of the year (2023: £15,933,000), a reduction of £629,000 arising entirely as a result of the receipt of disposal proceeds in the year. He said: “In simple terms, the company’s current level of indebtedness is unsustainable and we have therefore embarked upon a programme of asset disposals, the proceeds of which are being used to reduce the company’s borrowings. The asset disposal programme will continue until such time as the company’s earnings are sufficient to support its debt. At the same time, we are driving our underlying business performance to enable sufficient free cash to be reinvested in the business and facilitate the reinstatement of dividends for shareholders.” The company reported turnover of £68,073,000 for the year, up from £66,344,000 in 2023. Its pre-tax loss reduced from £4,064,000 to £2,776,000, with a gain on disposal of assets of £1,713,000 but exceptional costs of £1,111,000. Adjusted Ebitda was £1.2m (2023: £0.6m). It said on-trade ale volume declines of (5.8%) were worse than the market (3.7%), but performance improved during the course of the year to less than 1% behind the market in the second half. Townsend said: “Profitability across the business has been extremely unpredictable, and while most parts of the business failed to meet our budget expectations during the year, our hotels, managed pubs and tenanted pubs performed satisfactorily under the circumstances. The contribution from our shops was disappointing, on top of which generating profitable sales across our business-to-business channels fell well short of expectations, necessitating both a root-and-branch review of product and service costs across all channels and product lines, as well as a restructuring of our salesforce resources. We expect to see the benefits of these substantial changes take effect in 2025. Contract production in both brewing and distilling delivered an important contribution in 2024, demonstrating our capability as a high quality and flexible contract partner. What has become clear in a relatively short period of time is the necessity for strategic clarity to be brought to the Adnams business – simplification where appropriate, doubling-down on our strongest attributes and a steadfast pursuit of sales growth, providing that attractive margins can be realised. Adnams possesses a number of valuable brand and property assets and an enviable profile across Suffolk with its epicentre in Southwold. The chief executive is bringing much-needed clarity to our pursuit of those parts of the market where we can win profitably and those channels, or customers, where we may have to withdraw if profitable sales cannot be maintained. The UK hospitality marketplace is facing a number of headwinds in 2025, including unreliable consumer confidence, questionable economic growth and the imminent impact of increases in employment costs through employers’ national insurance contributions and the national minimum wage, plus the introduction of substantial additional taxes through the extended producer responsibility levy. Businesses such as Adnams are receiving no positive support whatsoever from the government, despite our role as an important employer at the heart of the communities which we serve. It is clear that the actions we are taking, and will continue to take, to improve profitability and reduce borrowings are the essential elements of a self-help story. Adnams has undergone significant change in 2024, and it is the Board's expectation that the benefits of the actions that have been taken will start to flow through into our financial performance in 2025 and beyond.”

Premium Club subscribers to receive updated segmented Multi-Site Database and videos from Excellence in Pub & Bar Conference tomorrow: Premium Club subscribers are to receive the updated Multi-Site Database tomorrow (Friday, 30 May), at 12pm. The next Propel Multi-Site Database provides details of 3,401 multi-site operators and is searchable in seven main segments. The database features 994 (29%) operators from the casual dining sector, 797 (23%) pub and bar operators, 578 (17%) cafe bakery operators, 474 (14%) quick service restaurant operators, 288 (8%) hotel operators, 221 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month, and this edition includes 18 new companies. The database includes new companies in the pub and bar sector such as Sophy, a bar concept primarily aimed at giving women a “safe space, and Lune Brew Co, the Lancashire independent brewery. Before that, at 9am, Premium subscribers will receive all the videos from this month’s Excellence in Pub & Bar Conference. The 13 videos include Gavin George, founder and former chief executive of Laine Pub Company, and Martin Wolstencroft, chief executive, and Laura Lewis, marketing director, of Arc Inspirations. Premium Club subscribers 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 Club subscribers will be offered a 20% discount on tickets to Propel paid-for events including the Operational Excellence Conference in July and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers 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 subscribers 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 subscribers 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.

Hollywood Bowl – warm and dry spring had short term impact on trading, reports record half year revenue: Hollywood Bowl has said the warm and dry spring weather had a short term impact on trading, which it has successfully mitigated, after it reported record half year revenue for the six months ended 31 March 2025. Revenue for the period was £129.2m, up from £119.2m in the first half of the 2024 financial year. Group Ebitda pre-IFRS 16 was £38.8m (2024: £38.6m) and overall group Ebitda was £49.7m (2024: 48.3m). Its pre-tax profit dropped from £30.9m in the first half of 2024 to £28.0m. The company said total group like-for-like revenue growth of 2.1% was negatively impacted by 0.9% due to movement of Easter and 0.2% due to the additional leap year trading day in 2024. UK like-for-like total revenue was up 1.3%, with bowling centres like-for-like of 1.5%. Canada like-for-like total revenue up 13.6%, with bowling centres like-for-like of 3.7% on a constant currency basis. Group adjusted Ebitda pre-IFRS 16 was up 0.5% while underlying group adjusted Ebitda pre-IFRS 16 grew by 8.8%, after taking account of prior year one off impacts totalling £3.0m. The company said it saw good returns from investments in new centres and refurbishments in the UK and Canada. It has a strong net cash position of £22.7m, with a new undrawn £25m revolving credit facility signed, with £5m accordion at improved margin. A £10m share buyback has successfully completed, the equivalent to two years of special dividends based on historical payouts. There is an interim dividend of 4.10 pence per share, up 3.0% versus the first half of 2024 (3.98 pence per share). The company had 75 UK centres at the period end and is on track to open a record five new centres in its 2025 financial year. New centres in Swindon, Preston and Inverness are all trading well and in line with expectations (at least 19% ROI) and it has completed four refurbishments, all trading above the UK target hurdle rate of 33% ROI. The company is track to open two new centres and complete one refurbishment in the second half, and its pipeline continues to grow, with five new locations signed. In Canada, where it had 15 locations at the period end, Hollywood Bowl has tripled in size there since acquiring the business in May 2022, with revenue and Ebitda more than tripling over the same period. Two new centres have opened in Ottawa and Calgary, with both trading well and above expectations, and two refurbishments have completed, performing well and receiving excellent feedback. The company is on track to complete four refurbishments in the second half and is starting construction at Christy’s Corner, Alberta, which is due to open in 2026. The Canadian pipeline also continues to grow, with three new locations signed. Hollywood Bowl also reported a 6.3% higher UK spend per game (SPG), with 11.6% increase in amusement SPG following investment in new game formats and space optimisations. There was a 5.4% higher SPG in Canada, with a 10.7% increase in food and drink SPG, reflecting improvements to menu and service. The company’s Pins on Strings roll out is complete in the UK and underway in the Canadian estate, while a new reservation system roll out has been completed across the group. In terms of outlook, the company said it has a strong pipeline for the second half and beyond and is on track to achieve target of 130 centres by 2035. It said it is well insulated from inflationary pressures, with over 70% of revenue not subject to cost of goods inflation, and with a low labour-to-revenue ratio of under 20% in the UK, it is well positioned to mitigate higher employment costs. Hollywood Bowl said the recent warm and dry weather, marking the driest spring in over a century, has had a short-term impact on trading over that period. In response, it has “proactively managed margins and costs, maintaining strong operational performance, which remains at historically high levels”. It said: “Despite this temporary headwind, we remain confident in our outlook for the second half of the year. We are well-prepared for the key July and August holiday period and continue to expect full-year Ebitda to fall within the range of current analyst forecasts.” Chief executive Stephen Burns added: “We delivered another strong financial performance in the first half and made excellent progress with our growth strategy in the UK and Canada. Investment in new centres, our refurbishment programme and customer experience continue to deliver excellent returns and record customer satisfaction scores. The prolonged period of unprecedented dry and warm weather from March to May, has had a short-term impact on trading. However, we’ve responded quickly, managing margins and costs while maintaining strong operational performance, which remains as good as it's ever been. Looking ahead, we're well positioned for the key summer holiday period, and we remain confident that full-year Ebitda will be within the range of current analyst forecasts. The significant investments we have made in the estate over the last 12 months, put us on course to enhance future Ebitda returns. We remain focused on our growth strategy, supported by our strong balance sheet. We have an exciting, growing pipeline in the UK and Canada and we remain on track to reach 130 centres over the next ten years.”

Esquires owner reports 38% rise in UK sales as it approaches 100 stores here, forms JV to acquire Buckinghamshire coffee house company: Cooks Coffee Company, owner of the Esquires brand, has reported a 38% rise in UK sales, in its interim results for the year to 3 March 2025, as it approaches 100 stores here. Total franchisee store sales in the UK & Ireland were up 33% at NZ$79.6m (FY24: NZ$58.2m), with UK store sales up 38% at NZ$55.6m (FY24: NZ$38.3m), compared to the industry average of 9%. Ireland store sales up 22% at NZ$24.1m (FY24: NZ$19.9m), compared to the industry growth of 1% in Ireland. There were 89 group sites in the UK and Ireland at 31 March 2025, up from 73 at 1 April 2024, which has since grown to 93. Chief executive Aiden Keegan said: “FY25 has marked a pivotal step forward for our business, we have not only delivered strong financial results but also outperformed the broader industry by a significant margin. These results reflect the strength of our franchise model, our focus on community-driven locations like market towns and suburban hubs, and our commitment to quality. The focus on market towns, housing developments and suburban locations has been an important contributor along with the focus on organic coffee products and an enhanced food offering with local sourcing where possible, delivered by local owners of the franchised stores. In addition, the award of the Dairygold café contract and our recognition as Ireland’s ‘Best Modern Organic Coffee Shop Enterprise’ are milestones that reinforce our strategic direction. With 93 stores open as at late May, we are well on track toward our goal of 300 stores by 2034. Coupled with our new banking arrangement with BNZ, which has reduced interest costs and strengthened our capital structure, we are entering the new financial year with strong momentum and confidence in our long-term growth strategy.” In the UK, new stores have opened since the year end in Hertford, Clifton (Nottingham), Maidenhead, Shirley, Leighton Buzzard and Crowthorne. Sales for the first eight weeks of the 2026 financial year are 30% ahead of the same period last year, with like for like sales up 3.3%. In Ireland, the Dairygold stores joined the system in December and contributed 5.5% of the total annual sales. Like for like store sales were up 4.3% versus 2024, and sales for the first eight weeks of the 2026 financial year are 22% ahead of the same period last year, with like-for-like sales up 4.3%. A new store is due to open in Mallow, County Cork, this week. The company and its key regional developer partner in the UK has also formed a joint venture to acquire the Black Goo brand. Black Goo stores are based in Thame in Oxfordshire and Tring in Hertfordshire. “The stores offer freshly prepared foods and handmade cakes – all served in stylish eclectic interiors,” the company said. “The consumer positioning is complementary to the Esquires brand, with typically a younger cohort of consumers.” In terms of outlook, the company added: “The FY26 financial year has begun strongly, with six new stores opened in the UK in the first eight weeks of the year. The expansion strategy, combined with strong like-for-like sales growth, demonstrates the company’s resilience and ability to attract and retain customers in both established and new locations, as well as the group’s strong market position and the effectiveness of its customer engagement strategies. In the core markets of UK & Ireland, around 250,000 customers are now being served each week by our great team, led by our franchisees along with their staff, supported by regional developers in the UK and the company’s great teams in both markets. With 93 stores open as at late May, the group is well on track toward its goal of 300 stores by 2034. Coupled with a new banking arrangement with BNZ, which has reduced interest costs and strengthened the capital structure, the group is entering the new financial year with strong momentum and confidence in its long-term growth strategy.”

Dubai property investment group adds to UK portfolio with acquisition of Hampshire hotel and resort: Dubai property investment group Select Group has added to its UK portfolio with the acquisition of a Hampshire hotel and resort. The group has acquired the Old Thorns Hotel & Resort in Liphook, occupying 317 acres and featuring an 18-hole championship golf course, 150 hotel rooms, 51 executive hotel apartments, a comprehensive events and conference centre and a well-established food and beverage offering. The group said it will now work closely with the incumbent team to “ensure a smooth operational transition and develop a thoughtful, phased strategy to enhance service delivery, optimise amenities, and reinforce the resort’s position as a premier hospitality destination in the region”. Rahail Aslam, Select Group’s chairman, said: “Old Thorns represents a key addition to our growing UK portfolio. We are focused on identifying distinctive assets in prime locations that align with our long-term vision. This resort offers exceptional potential, and we are committed to building on its legacy while elevating the overall guest experience.” Select Group’s UK portfolio also includes Innside by Melia in Liverpool, Fairmont The Mere Golf Resort & Spa in Cheshire, Raddison Blu Hotel Birmingham and Ibis Budget Sheffield City Centre. It also had hospitality locations across the UAE and in Germany, as well as residential, retail and commercial investments. Headquartered in Dubai, the group was founded in 2002 by Aslam, who had previously started his own technology company at the age of 16 and grew it into one of the largest importers and distributors of IT hardware across the UK and Europe.

Team behind The Crystal Maze Live Experience and Chaos Karts set to open London location for its Arcade Arena concept: The team behind The Crystal Maze Live Experience attraction and Chaos Karts immersive go-karting is set to open a London location for its Arcade Arena concept. Little Lion Entertainment has said it will open a flagship Arcade Arena in the capital in early 2026. As well as showcasing the company’s Chaos Karts and Pac-Man Live experiences, the new London site will also host the premiere of an as-yet unnamed third game, promising to be Little Lion Entertainment’s “most electrifying creation to date”. Tom Lionetti-Maguire, founder and chief executive of Little Lion Entertainment, said: “Arcade Arena is redefining the attractions industry and joining the gaps between live experiences and video games. The success of this venue in both Manchester and Dubai proves that the human need for in-person interactivity and connectivity transcends borders and cultures. This new venue will be the first of many new location announcements over the coming months, both within the UK and abroad as we embark on our ambitious growth plans. Our London Arcade Arena will be our boldest, most electrifying venue yet, bringing both of our existing games to as prominent a location as you can get in London, and just wait until you see the third game we have in store!” Little Lion Entertainment, which is also behind Tomb Raider: The Live Experience, launched Pac-Man Live Experience at Arcade Arena Manchester in March. It replaced Chaos Karts at Arcade Arena, located in Manchester’s Lower Byrom Street. In December, Little Lion managing director Neil Dolan told Propel the business is planning a UK roll out for its Arcade Arena concept alongside overseas expansion. He said: “The adaptability and repeatability of this concept means there’s no reason why we can’t have ten to 15 Arcade Arenas across the UK with different content. We will also be looking to develop new games and franchise our games internationally.”

FB Holdings to open second site for Indian street food kitchen concept next month: FB Holdings, which is behind the Dirty Wild Wings virtual restaurant brand and the four-strong Jaqks chicken concept, is set to open a second site for its Indian street food kitchen concept Indico next month. Propel revealed last August that the group planned to convert its tapas-inspired Alioli site at the Touchwood shopping centre in Solihull to an Indico. The site will now reopen as Indico on Wednesday, 4 June, the new restaurant signalling “a bold new chapter” for the brand, “formerly known for its vibrant Bollywood-themed interiors that danced with colour, texture, and cinematic flair”. The restaurant, situated on the ground floor, “comes with a new design direction, one of understated elegance and elevated charm”. A company spokesman said: “Think soft ambient lighting, textured neutrals, artisan finishes, and carefully curated details that whisper sophistication. Whild still paying homage to India with quirky nods to Mumbai street culture, like the push bike and caricature moustache.” Dishes will include sizzling chaat, crispy samosas, smoky tandoori grills and rich, aromatic curries, alongside vegetarian and vegan options and cocktails with “traditional Indian flair”. The new site will replace the company’s Indico site in Parkgate, Shirley, which has now closed. It also operates an Indico site at The Mailbox in Birmingham. Operations Manager Ranjit Singh said: “We’ve loved serving our customers at Parkgate, but moving to Touchwood is an exciting new chapter for Indico. This vibrant space allows us to welcome even more guests and give them the full Indico experience: great food, great vibes, and a little slice of India right here in Solihull.”

Crunch talks set for planned Flamingo Land theme park in Scotland: Crunch talks are set to discuss the future of a planned Flamingo Land theme park in Scotland following years of opposition from politicians, environmental groups and local communities. An emergency public meeting has been set up to discuss the controversial development of Flamingo Land on the banks of Loch Lomond. The £40m proposal includes hotels, more than 100 holiday lodges, a waterpark, restaurants and even a monorail. It’s the latest version of plans that were first put forward back in 2018 but scrapped a year later after public backlash, reports The Sun. Flamingo Land later came back with an updated proposal in 2020, promising a resort that would be a “major step away” from its existing Yorkshire theme park and zoo. But despite those changes, the project has continued to face resistance from both locals, MPs and conservation groups. The development site is in Loch Lomond and The Trossachs National Park, an area known for its stunning scenery, ancient woodlands and rare wildlife. Earlier this year, the Scottish government gave the project the green light, overturning a decision by the national park authority which had rejected the plans on environmental grounds. The Scottish Environment Protection Agency and the National Trust for Scotland have both objected to the plans, while more than 155,000 people who signed the Save Loch Lomond campaign. Supporters of the plan argue it could bring jobs and boost tourism in the area, however. A public meeting has now been set for Friday (30 May) to discuss the future of the park.