The parent company of Henley pub company and brewer Brakspear has revealed its annual results for the year ending December 2016, with turnover up almost 14% to £25.5m.
J T Davies & Sons revealed that operating profit was down by 11%, with the company saying this was down to a total of £6.9m investment into its pub estate last year in the company’s managed division, which included the acquisition of the Grapevine Hotel in Stow-on-the-Wold.
The property was taken over last year and then given a complete refurbishment before reopening as the Sheep on Sheep Street with a bar, restaurant and 22 boutique bedrooms.
The Bull on Bell Street in Henley, Brakspear’s first managed pub, also received a major renovation, with a refurbishment and change of management team at the George Townhouse to round off the investment.
The managed business now comprises nine pubs, with three additions planned within the next 12 months.
Growth came from the managed division, where sales grew by £3.1m to £8.8m, while turnover in the tenanted and leased estate was flat versus 2015.
Within the tenanted and leased estate, Brakspear recently exchanged contracts on one pub, and continues to look for further acquisitions.
It also sold three sites during the year as part of its pub disposal programme, the Pizza Lounge in South London and the Rising Sun in Reading having been closed for a number of years, while the Abingdon Arms in Beckley, Oxfordshire, was bought by a local residents group.
The tenanted and leased estate currently stands at 123 sites.
Chief executive Tom Davies said: “2016 was a good year for Brakspear. Within our tenanted and leased estate, we are seeing real benefits from several years of investment in design, marketing, training and tenant recruitment.
“Major investment in the people and infrastructure in our managed division allowed us to accelerate the development of this side of our business and puts us in a strong position for further expansion.”