Liberation Group welcomes record sales of £144.4m

Liberation Group, the privately owned premium pub operator and brewing company, has announced record revenues of £144.4m, up 20% for the year ended 27 January 2024. 

Strong underlying growth also resulted in LFL Managed Pub EBITDA increasing 19%.

The group’s UK managed pubs produced a “strong” performance, with an 8.0% increase in LFL growth, ahead of the industry CGA RSM Hospitality Business Tracker in the UK, on the back of “excellent” contributions with all categories showing LFL growth, including a standout performance in accommodation of 11.6%.

Investment into the estate continued during the year, with seven developments across the managed estate, which, alongside targeted divestments, enabled the creation of a “high-quality” Freehold estate in both the Managed and Tenanted Divisions. 

Examples include the Northey Arms in Box, Wiltshire, which, post investment, has achieved sales growth by an average of 22%.

LFL sales in the Managed Pubs in the 13 weeks ended 27 April 2024 were +6.5%, with LFL growth in all three categories including strong growth in food at +8.5% and 10% pts growth in occupancy. Pubs acquired from Cirrus Inns in 2022 also recorded a 10.4% LFL growth. 

Additionally, occupancy in the new pubs is 19% points ahead of last year and LFL sales on food at +18.8% for the first quarter. 

The Brewing and Drinks business also continued to thrive in a “highly challenging” market, with a record year of volumes and sales in Butcombe Brewery. Butcombe Brewery once again achieved volume growth versus last year on its range of cask, keg and bottled brands with strong single digit growth in the Free Trade.

Jonathan Lawson, CEO of Liberation Group, said: “2023 was a standout year for Liberation Group as we delivered a year of record sales with growth across all of our divisions. 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.

“We should remind ourselves that in 2016 we only had 10 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.”

Lawson 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.”