A ‘year of significant progress’ for Oakman Inns with sales up 20.4%

Oakman founder and chief executive, Peter Borg-Neal
04/01/2018 - 09:20
Oakman Inns & Restaurants has reported a “year of significant progress” for the year ending 2 April 217, with group turnover at £23.3 million – up 20.4% on 2016.

Other financial highlights include a 3.5% increase in like-for-like sales, with ‘average sales per core site exceeding £30k net per week’; a 31.3% increase in site EBITDA to £4.04 million and group EBITDA having more than doubled to £1.68 million.

As well as this, Oakman said it “continued to successfully execute its longer-term strategy” as it opened two new sites (Solihull and Royston) and also acquired Ascot-based freehold pub, The Royal Foresters, which brought its total site count to 16.

Since the year end, it has purchased another three venues which are all currently trading, and a further four which are under construction. Oakman is also “in negotiations on seven further sites.”

Chief executive and founder Peter Borg-Neal said: “2016/17 was a good year for us. As well as achieving strong sales and profit growth, we were able to raise considerable sums and to build an exciting pipeline. 

“Like everybody else, we have been negatively impacted by the weakness of Sterling and the ever-increasing burden of taxation. However, we have genuine momentum within the business and the current year is also going very well.”

For the Christmas period (four weeks prior to 31 December), Oakman has reported a 5.9% trading growth despite being “badly hit by snow” for the first two weeks.

That said, “a really strong second half” saw the group take home average weekly sales per site of £45k net of VAT, and also set a new record day of £205k net of VAT and a new record week of £898k net of VAT.

Borg-Neal added: “Although the like-for-like sales were slightly down on our year to date run-rate, I am delighted with our performance over Christmas. 

“The snowfall had a negative impact of around £100k on our business and, even after allowing for the fact that some customers rebooked for another day, we estimate it knocked around 2.5% to 3% off the like-for-like increase.

“Accordingly, to achieve +5.9% despite the impact of the weather is a superb result. Even more so when you consider that we were rolling over strong comparables of +6.7% like-for-like growth in the same period last year.”

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