Oakman Group has published positive results and details of a major refinance deal, with plans actioned to grow the company by 25%.
Trading update:
• Total sales for the 31 weeks ending 6 February, were £37.9m – a 74.3% growth over last year when the business was forced to close.
• Compared to the same period two years earlier, this represents total growth of 28.3% and like-for-like growth of 12%.
• Like for like sales were 8% up (11% if 3 weeks leading up to Christmas are ignored).
• Wet sales have increased which, given the lower staff costs, will have a disproportionally positive impact on profits.
• Weekday accommodation sales are below budget in line with abnormal working patterns, but the company has mitigated this issue by putting increased focus on the leisure market for its rooms.
Refinncing
The firm completed a £29m refinance of its freehold estate with Cynergy Bank of £18m.
Steven Kenee, Okaman's Chief Investment Officer, said, “I am delighted that we have been able to complete the refinance with Cynergy Bank who have proven to be a pragmatic and responsive partner over the past two years, and I am grateful for the faith and support they have shown the business.
'The transaction significantly reduces our cost of capital, simplifies our corporate structure, and further strengthens the foundations from which our ambitious plans for the group will grow.”
Pipeline
The group has recently completed significant refurbishments of two sites and is due to open two new sites within the next two months in Buckingham and Tring.
It has also secured, what the Directors believe, is its strongest ever pipeline of new sites, the development of which will increase the size of the group by some 25%.
Best Company, new Chef’s Academy & apprenticeships
Oakman employs over 1400 people across their 36 existing sites and is delighted to have retained their Three Star status in this year’s ‘Best Companies’ to work for list.
It is also proactively mitigating employment issues associated with the hospitality industry via the recent opening of the company’s ‘Oakman Chef Academy’ based at The Woburn, and run by Chef Director, Ross Pike.
The Academy gives newcomers to the industry the opportunity to retrain in a new career with a guaranteed job at the end of the course. The company also has 20 apprentices on programmes including degree apprenticeships at Basecamp and with some of their senior operators.
Going green growth
Chairman and Founder, Peter Borg-Neal (pictured) has also announced the development of the firm's green credentials as it literally breaks new ground with the creation of a kitchen garden at The Akeman Inn in Buckinghamshire.
Borg-Neal commented, “This prototype development aims to achieve a multiplicity of objectives. Key is an exploration of how the company can shorten the supply chain and utilise local.
'Furthermore, it will act as an education centre and for engaging with the local community. If the kitchen garden is a success, Oakman Group Plc will look to replicate the idea at the other sites across the estate where sufficient land is available.”