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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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RED OAK TAVERNS LIMITED
COMPANY INFORMATION
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RED OAK TAVERNS LIMITED
CONTENTS
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RED OAK TAVERNS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The accounts of Red Oak Taverns Ltd for the year ended 31 December 2024 reflect another year of strong performance for the Company, delivered against a backdrop of ongoing economic uncertainty and persistent cost-of-living pressures. Despite these external challenges, the business has continued to perform well, underpinned by careful financial management, operational resilience, and a continued focus on delivering value.
We have maintained our commitment to investing in our existing portfolio, supporting our tenants, and growing the business through targeted acquisitions. These efforts reinforce our long-term strategy to build a robust and sustainable pub estate while adapting to changing market conditions.
Sales of the Company reached a record level of £23.5 million, representing an increase of £4 million, 21% compared to 2023. This growth contributed to the operating margin (adjusted for disposals of assets) of 34%, up from 33% in the prior year.
A key factor driving the increase in sales was the continued investment in our estate, with £2.9 million spent on maintenance and capital expenditure. In addition, we strengthened our partnerships with tenants to support and enhance operational performance. During the year, the Company acquired 19 high-quality sites for £12.6 million and disposed of 9 underperforming assets as part of an ongoing strategy to optimise the portfolio. Additionally, the Euro Championships during the summer of 2024 provided a significant boost to trade across our estate. Many pubs experienced increased customer visits and higher sales volumes on match days, which positively impacted overall revenues for the year. The Company actively supported this through targeted marketing and event programming in partnership with tenants. Cost control remained a priority, with ongoing efforts to improve operational efficiencies and manage supplier relationships closely. These initiatives helped mitigate inflationary pressures and support profitability. Loss for the year before taxation was £45k. After a deferred tax movement of £119k, the net profit for the year was £75k.
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RED OAK TAVERNS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal risks and uncertainties facing the Company are set out below and are monitored on an ongoing basis by management, who meet regularly to assess and respond to changes in the external and internal risk environment.
Although inflationary pressures have eased compared to the previous year, costs across food, drink, energy, and wages remain elevated relative to historical norms. Labour costs in particular have risen due to increases in the National Minimum Wage and National Insurance contributions. The Company continues to support its tenants and invest in the business to maintain long-term resilience and quality of service. The primary risk continues to be the broader global economic uncertainty and its effect on consumer confidence and spending patterns. While socialising and hospitality remain core aspects of UK culture, changes in consumer behaviour — particularly in response to cost-of-living pressures — may impact trading performance. These trends are closely monitored through the production of monthly management accounts and regular board oversight. The ongoing conflicts in Ukraine and the Middle East (including Gaza) present continued geopolitical risk, with potential macroeconomic consequences such as commodity price volatility, supply chain disruption, and impacts on energy and inflation levels. Interest rates also remain a concern, with elevated borrowing costs affecting both business investment and consumer spending power. Despite these uncertainties, the Company remains well positioned to manage potential economic challenges, underpinned by its strong reserves, prudent financial management, and a continued focus on cost control and operational efficiency.
Volume data in relation to barrelage is closely monitored with all sites reviewed on a regular basis and comparison to prior months and prior years discussed. Where required, any large variances are investigated and rectified by discussion with the tenant partner.
Capital expenditure is an important part of the company’s outlook and strategy with the aim of supporting tenants and investing in the portfolio. This in turn will lead to higher rents, stronger covenant and better tenants. This is reported monthly to the Board with an analysis of historic capital expenditure analysed and future pipelines discussed. House EBITDA - we closely monitor our House EBITDA performance. This is reviewed in monthly meetings with the operational and the senior management team and we regularly compare to previous years and our Budget to ensure the required growth is being achieved from each site and the estate as a whole.
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RED OAK TAVERNS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Closed sites are regularly reviewed with both the financial impact of the site considered, the length of time it has been closed and the option to dispose of the site. Closed sites represent both a loss of income and an extra cost to the company with security costs and empty business rates and therefore the Company policy is to keep these to an absolute minimum.
Agreement types with tenants are also reviewed on a regular basis. The aim of the company is to reduce the number of short term ‘tenancies at will’ that are in place at any one time with more substantive lease and tenancy agreements considered to be a better long term income stream for the Company. As at the end of 2024, the Company’s net assets stood at £37.3 million, representing a slight decrease compared to December 2023. This was partly driven by the disposal of certain assets at values below their net book value. These lower-performing assets were sold to help fund the acquisition of 19 higher-quality pubs during the year. The Company's net current liabilities increased from £149k in 2023 to £3.1 million in 2024. This movement is partly attributable to a £2.9 million loan facility that falls due in 2025, which has been reclassified as a current liability. Despite this increase, the Group maintains a strong financial position, supported by cash reserves of £1.8 million and total bank borrowings amounting to £76.8 million. Finally, I have the pleasurable task yet again to thank all the executives and employees of the Red Oak Taverns Group for their hard work and achievements during the year and I am delighted to be able to express my appreciation for their efforts.
This report was approved by the board on 27 June 2025 and signed on its behalf.
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RED OAK TAVERNS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £74,618 (2023 - £4,695,540).
There was a dividend of £200,000 (2023: £200,000) declared in the company and paid to the ultimate parent company.
The directors who served during the year were:
The company will continue to invest in its portfolio and look to make strategic acquisitions that will enable the company to grow over the coming years.
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RED OAK TAVERNS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditors, BKL Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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RED OAK TAVERNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED OAK TAVERNS LIMITED
We have audited the financial statements of RED OAK TAVERNS LIMITED (the 'Company') for the year ended 31 December 2024, which comprise the Profit and loss account, the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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RED OAK TAVERNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED OAK TAVERNS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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RED OAK TAVERNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED OAK TAVERNS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
•enquiring of management as to the Company’s policies and procedures to prevent and detect fraud as well as enquiring whether management have knowledge of any actual, suspected or alleged fraud;
• reading minutes of meetings of those charged with governance; and • using analytical procedures to identify any unusual or unexpected relationships. As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the Company’s revenue streams are simple in nature with respect to accounting policy choice, and are easily verifiable to external data sources or agreements with little or no requirement for estimation from management. We did not identify any additional fraud risks. We performed procedures including • Identifying journal entries and other adjustments to test based on risk criteria and comparing any identified entries to supporting documentation; and • incorporating an element of unpredictability in our audit procedures. Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general sector experience and through discussion with management (as required by auditing standards), and discussed with management the policies and procedures regarding compliance with laws and regulations. The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. The Company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of litigation or impacts on the Company’s ability to operate. We identified company law as being the area most likely to have such an effect. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some
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RED OAK TAVERNS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED OAK TAVERNS LIMITED (CONTINUED)
material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
35 Ballards Lane
N3 1XW
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RED OAK TAVERNS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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RED OAK TAVERNS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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RED OAK TAVERNS LIMITED
REGISTERED NUMBER: 07793587
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
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RED OAK TAVERNS LIMITED
REGISTERED NUMBER: 07793587
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The notes on pages 20 to 37 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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