Propel Morning Briefing Mast Head CPL Learning Link Paul's Twitter Link Hive Pubs by Greene King Banner
Morning Briefing Strap Line
Sat 26th Sep 2015 - G1 Group reports 10% Ebitda growth, cautions on Scottish economy
G1 Group reports 10% Ebitda growth, cautions on Scottish economy: Scotland’s biggest independent managed operator G1 Group (Holdings), led by Stefan King, has reported turnover up 4% to £70.2m in the year to 31 March 2015. Total operating profit was £11.1m, up 3% on last year Ebitda grew 10% to £18.9m. The year saw continued investment in the estate with capital and investment expenditure of £10.2m. The gross profit percentage increased marginally to 77.4% (2014:77.1%) of group turnover. Group net assets increased by £5.8m to £51.5m at 31 March 2015. The group undertook a significant capex programme in the year, with £5.3m invested in the estate to maintain its integrity and market position. A total of £4.9m was invested in acquiring new properties. Acquisition activity has continued since the year end with the acquisition of a prominent property in Aberdeen. The group is also in the process of acquiring a significant new hotel development. The company stated: “Despite the acquisition and development activity, the group approaches 2016 with caution. In the leisure sector, London and the south east, in particular, are experiencing rates of growth well ahead of other areas of England and Scotland. This is reflected in the press updates for most of the quoted groups which have activities throughout the UK. A number of factors can be identified as contributing to the divergence in growth rates. One cited by most parties is the change to the drink driving limit in Scotland, whilst a downturn in the oil sector affects not just the Aberdeen economy, but has repercussions for many companies across Scotland. With legislative changes increasing operating costs in the hospitality sector there will foreseeably be an impact on margins should consumer spend not rise commensurately. Economic growth in the hospitality sector in Scotland is influenced considerably by events and functions – recent examples have been the Commonwealth Games, the Edinburgh Festival, the Ryder Cup and then the Open Golf Championship, augmented by the continuing development of the facilities at the SECC, SSE Hydro and the EICC amongst others. The G1 Group has made a series of appointments this year to add to the depth of experience of the senior management team and is looking to enhance the learning and development team to ensure that the experience flows throughout the group. Hence it believes it is well-positioned to address the challenges which the sector will undoubtedly face.” Chairman Brian McGhee said: “During the second half of 2014, the group made a series of acquisitions encompassing restaurants and bars in Edinburgh, Glasgow, St Andrews and Stirling. The refurbishment programme continued, with the most significant taking place at Corinthian in Glasgow with the relocation of the casino activity within the building to create the Cotton Club and the development of the Flying Scotsman to cater for larger functions, weddings and events within the building. The momentum in acquisition and development activity has continued since the year-end with the acquisition of the well-known Espionage clubs in Edinburgh and Aberdeen, and the property housing The Jam House in Edinburgh. Recently, the group completed the development of development of Franklin & Sloane, a new and fresh pub and kitchen concept in Kilmarnock.”

Return to Archive Click Here to Return to the Archive Listing
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
Maliburu Banner
Hit Training Banner
OakNorth Banner
Contract Furniture Group Banner
Nutritics foodprint Banner
Douwe Egberts Barista Editions Banner
Hogs Back Banner
Heinz Banner
Estrella Banner
Knorr Banner
Camile Thai Banner
St Austell Brewery Banner
Sky Banner
Hungrrr Banner
Frobishers Banner
Peroni Banner
TipJar Banner
Airship – Toggle Banner
Cynergy Bank Banner
Zonal Banner
John Gaunt Banner
Libeo Banner
COREcruitment Banner
KAM Media Banner
Access Banner
Reputation Banner
Yapster Banner
Zonal Banner
Trail Banner
The Licensees Association Banner
Tiny Cloud Kitchens Banner
Harri Banner
Propel Banner
Hogs Back Banner