Drake and Morgan FY profits rise as revenues hold steady

Drake and Morgan has reported flat annual revenues but higher profits after lower costs helped offset a challenging trading environment for the 52 weeks to 30 March, with the group also recording its second consecutive year of record Christmas bookings.

The London-based bar and restaurant group said turnover for the period reached £44.5m, which was broadly in line with the previous year on a like-for-like basis. Adjusted earnings EBITDA rose to £4.7m from £4.4m a year earlier.

The business, which is backed by private equity firm Bowmark Capital, said trading during the five-week festive period delivered like-for-like sales growth of 15% compared with the same period last year. It expects to deliver a third consecutive record Christmas in the current financial year.

During the first half of the period, Drake and Morgan had been affected by unseasonably wet weather and a cooler-than-average summer, which weighed on performance across venues with outdoor space. 

However, the group revealed that easing inflationary pressures, particularly lower energy costs, alongside ongoing cost-saving measures, supported profitability over the year as a whole. 

According to the group, current trading remained resilient, with like-for-like sales ahead of last year, and it continues to invest in its estate to maintain its customer offer. 

David King, chief financial officer of Drake and Morgan, said: “The results for the year to March 2025 highlight the resilience of the business despite a challenging first half of the year, marked by unseasonably wet weather and one of the coolest summers in nearly a decade, affecting trading across our outdoor terraces.

“We are set to have another record-breaking Christmas with many of our bars once again achieving record days and weeks.”