The Redcat Pub Company has been set up to invest extra £ 10-12 million to update their property next year as part of its ongoing investment program.
This investment follows the challenging year of the PUB group, which placed the 10 site rented pubs last year.
To stabilize the company last summer, an £ 61 million refinement agreement was confirmed. The group also committed to investing £ 8 million in rehabilitation, staff training and expanding their food, drink and accommodation offers in a wider business.
Redcat, which maintains more than 90 pubs, announced that net sales would rise from 120.5 million to £ 129.8 million in 12 months ending on March 31, 2024. However, the spotted EBITDA dropped to £ 2.2 million, which was £ 3.6 million the previous year.
Despite the ongoing financial challenges, the group stated that they were expecting “improved trade” in their portfolio for more than 2024/25.
Former Greene King CEO Rooney Anand founded Redcat in 2021 and is aiming to take advantage of the wave of pub sites available after pandemic.
The company quickly expanded to over 90 sites and acquired the 18 -site Coaching Inn Group in 2021.
Mike Rothwell, Director of Redcat in the company’s accounts, said that current financial challenges could provide additional opportunities for the group to acquire new sites.
He added: “External factors continue to influence ongoing trading, while they also create more procurement opportunities. Geopolitical events that affect energy prices, betting costs and living costs are undoubtedly a constant challenge for the entire hospitality industry.
“Although the group is not immune to these serious headwinds, the group will continue to adapt with suppliers to improve procurement. Our brokers to manage our energy costs effectively and ensure that our business is as effective as possible by providing great customer experience.”
Redcat will be reopened in the Wales of the BreCon Hotel Castle this month after a 3 million renovation.
The hotel, which is part of the Coaching Inn portfolio, is set in the remains of Brecon Castle. It was closed in October 2024 for complete renovation, including its 42 bedrooms, 103 deck restaurant, bar and public areas.
Over the past year, Redcat has sold 12 smaller pubs and purchased four sites from the leased pubs after it went to the administration.
