RedCat investment pays off in first quarter
Total sales for RedCat Hospitality came in at £32.7m.
The pubs and rooms business founded and chaired by Rooney Anand has released its figures for the first quarter of its new financial year.
Total sales for RedCat Hospitality came in at £32.7m, with its divisions Coaching Inn Group and RedCat Independent Pubs generating £19.1m and £13.6m respectively.
"We are very encouraged by this start to the financial year; the hard work we have undertaken in the past 14 months to invest in and strengthen the business is really paying off, as these latest figures show," says RedCat Hospitality CEO Richard Lewis.
"Despite the challenging headwinds, which continue to affect the sector as a whole, like-for-like sales for the first quarter of this financial year are up +6.7% across the group (to £32.7m).
"The accommodation side of the business continues to perform very strongly, reflecting our strategic focus and investment in growth and revenue management. By strengthening resources and expertise in this area, we are seeing clear rewards: room sales are up +8% on a like-for-like basis across the whole group."
Investment paying off
RedCat says the success of its capital investment programme is coming through strongly.
Since reopening in April, following an extensive £3m refurbishment, the 42-room Castle of Brecon Hotel in Powys has seen a 94% uplift in overall sales.
"This mirrors the strong results seen at other sites, which have benefited from our investment programme in RedCat Independent Pubs over the past 12 months," adds Lewis. "Including The Bull in Barton Mills, The Wig & Mitre in Lincoln and The Crown Inn, The Curzon Arms and The Langton Arms in the Leicestershire area, which together have posted a 20.3% increase in like-for-like sales, over the period, helping RedCat Independent Pubs achieve 6.2% like-for-like growth overall."
In its most recent published set of accounts for year ended 31 March 2024, the business posted an 8% increase in turnover to £129.8m and site EBITDA rose 13% to £13.2m.
In accounts expected to be released later this month for the financial year to March 2025, RedCat Hospitality anticipates reporting a 42% increase in site EBITDA on the back of 2% like-for-like sales growth supported by much improved operational performance.
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