South West brewery and pub group Liberation has reported “record” sales for the financial year, boosted by the expansion of its accommodation business.
Total group revenues were £144.4m for the year ended January 27 – a jump of 20% compared to the same period last year.
The group said its like-for-like managed pub EBITDA had also increased 19% despite a “particularly challenging” inflation and cost environment. Jonathan Lawson, chief of Liberation Group, said that 2023 was a “standout” year for the business, and set sights on expanding its room offering by 300.
However, Liberation said the national minimum wage increase in the UK and Channel Islands had presented “ongoing pressure” on payroll. The group attributed its recruitment programme, focusing on hiring South African chefs and managers, to reducing costs and improving vacancy rates.
Mr Lawson added, “It is particularly satisfying to see the way that mature parts of our business continue to grow such as our managed estate, tenancy and Butcombe drinks, whilst also seeing newer elements coming through strongly, such as accommodation.”
The group’s strategy of prioritising accommodation has increased growth in food and drink sales over the financial year. Occupancy in the new pubs is 19% points ahead of last year, the business said, and like-for-like sales on food is up 18.8% for the first quarter.
“It is particularly satisfying to see the way that mature parts of our business continue to grow, such as our managed estate, tenancy, and Butcombe drinks, whilst also seeing newer elements coming through strongly, such as accommodation,” said Liberation Group chief executive, Jonathan Lawson.
“We should remind ourselves that in 2016 we only had ten rooms and now we have over 400, with the potential to achieve 700 in the existing estate as our accommodation offering increasingly forms a substantial lever for our overall managed business. This performance is undoubtedly a differentiator for our group when we look at the wider performance across the sector.”
“Our events-led offering is key as we continue to see a rise in the importance of experiences for our customers. For example, our premium pubs and inns are perfectly placed to take advantage of a growing trend for smaller, more exclusive and intimate weddings or celebrations, and experiences such as comedy nights, outdoor cinemas and supper clubs. As we head into the summer months, we also see a rise in bookings around festivals such as Glastonbury and Goodwood Festival of Speed.”
He added: “We are witnessing a growing opportunity in the breakfast and brunch market and will continue to develop this offering in our estate of 42 inns and other selected locations. Market data shows that over half (55%) of British adults are dining out for breakfast at least twice a month, whilst a quarter of us (25%) go out for breakfast every week as it is increasingly seen as a more affordable way to treat family and friends.”
“Looking forward, we remain optimistic for the year ahead as we start to see a calmer cost environment and are excited by the plans that we have for growing the existing business. In accommodation, we have progressed rapidly in the last five years and the launch of Butcombe Boutique Inns presents an exciting next step.”
