Red Oak Taverns sales jump 21% to £23.5m despite lower FY profits
Trading benefited from increased customer visits during the Euro 2024 tournament, with the company and its tenants running targeted marketing and events to capitalise on demand
Red Oak Taverns has reported a “record” 21% rise in sales to £23.5m for the year ended 31 December 2024, despite a fall in annual profits and continued economic pressures.
The pub group, which owns and operates sites across the UK, attributed its jump in sales to estate investment, acquisitions, and strong trading during the Euro 2024 football tournament.
Trading benefited from increased customer visits during the Euro 2024 tournament, with the company and its tenants running targeted marketing and events to capitalise on demand.
Meanwhile, the company’s operating margin, adjusted for asset disposals, rose slightly to 34% from 33% the year prior.
However, profit after tax fell sharply to £74,618, compared with £4.7m the previous year, due in part to deferred tax movements and disposals of underperforming assets.
As a result, Red Oak Taverns ended the year with a loss before tax of £45k.
During the year, the company acquired 19 pubs for £12.6m and sold nine sites deemed underperforming. It also invested £2.9m in maintenance and capital expenditure, which it said helped drive sales growth and supported tenant operations.
Director Mark Grunnell stated in Red Oak Taverns’ filing at Companies Hose that the group’s resilience reflected “careful financial management, operational resilience, and a continued focus on delivering value”.
Grunnell added: “We have maintained our commitment to investing in our existing portfolio, supporting our tenants, and growing the business through targeted acquisitions.”
Red Oak ended 2024 with net assets of £37.3m, slightly lower than at the end of 2023, reflecting asset sales at below book value. Net current liabilities rose from £149k to £3.1m, partly because of a £2.9m loan facility reclassified as a current liability.
The company also reported cash reserves of £1.8m and total borrowings of £76.8m.
According to Red Oak Taverns, it continues to review closed sites to minimise losses and costs, and aims to reduce the number of short-term tenancies at will in favour of more substantive lease and tenancy agreements.
