Liberation Group reports ‘encouraging performance’ amid 6.3% sales rise
It said that sales growth was driven by an ‘encouraging performance’ on drinks, a robust performance on food and record sales in accommodation
The Liberation Group, consisting of over 120 pubs, bars and inns across the UK, has reported that over the period of 21 May to 3 September 2022 its total LFL sales across its managed pub division was up 6.3% on 2021 figures and 30.0% up on 2019.
It said that sales growth was driven by an “encouraging performance” on drinks, a robust performance on food – which was only slightly negative due to the variance in VAT rates YOY in the UK – and record sales in accommodation demonstrating “another strong summer of staycation and an encouraging recovery in business and international guests”.
It added that strong performance in the UK has been aided by an encouraging recovery in Guernsey and Jersey, benefiting from strong tourist demand and a gradual return to office working in St Helier, Jersey.
OBV volumes were 9.5% up on last year, driven by strong demand for its keg portfolio of ales and lagers.
On inflation worries and energy price hikes, the company said it is “keen to understand further details from the government, including longer term utility support and actions to reduce VAT and suspend business rates”.
Jonathan Lawson, CEO, Liberation Group, said: “The trading outlook has clearly toughened, with our customers contending with a cost-of-living crisis and ourselves grappling with cost base pressures, the most extreme of which is utilities. Therecently announced support from the government is welcomed and provides some reassurance for our customers, which is important and some short-term de-risking of extreme utility costs for business. However, even with the support announced, our UK utility costs will double in October.
“We are keen to understand further details from the government, including longer term utility
support and actions to reduce VAT and suspend Business Rates. Once again, we have cause to be thankful of our Group composition and geography as utility inflation and costs in the Channel Islands has been kept to a manageable level over the next few years which helps blend and balance our overall cost base.”
He added: “Despite the obvious headwinds for our customers and ourselves, we are confident in our ability to deliver a fantastic Christmas for our customers and ongoing investment into our business is testimony to the belief in our teams and in the potential for our business over the next few years.”
