Oakman announces healthy growth; new refinancing deal; reports strongest ever pipeline
Oakman Group Plc recently informed their Shareholders of a number of corporate activities, the key points of which are outlined below:
Funding:
Oakman is delighted to announce that they have completed a £29m refinance of its freehold estate with Cynergy Bank of £18m.
Steven Kenee, Chief Investment Officer, Oakman Group Plc, commented: “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.”
Steve Crosswell, Relationship Director, Cynergy Bank, commented: “This is a landmark deal for Cynergy Bank and one we were keen to transact with the Oakman Group Plc, who we believe to be an outstanding
Oakman has also made further progress with strengthening its balance sheet via the launch of a FCA Regulated Share issue which has seen over 300 new shareholders joined the company since it was launched on 17th December 2021.
Pipeline:
The Group has recently completed significant refurbishments of two existing 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%.
Trading Update:
Despite the impact of Omicron on the key festive period, total sales (net of VAT) or for the 31 weeks ending Sunday 6th of 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 a total growth of 28.3% and like-for-like (same units) growth of 12.0%.
Taking into account and adjusting for VAT reductions, the Oakman Group Plc’s like for like sales were 8% up (11% if you ignore the three weeks leading up to Christmas).
Encouragingly, the company’s wet sales have increased which, given the lower staff costs, will have a disproportionally positive impact on profits.
Unsurprisingly, 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 our rooms.
Best Companies | 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.
New Kitchen Garden:
Oakman Group Plc Chairman and Founder, Peter Borg-Neal, also announced to shareholders a development of their green credentials as they literally break new ground with the creation of a kitchen garden at The Akeman Inn in Buckinghamshire.
Peter 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.”
New Board structure:
With immediate effect, the Oakman Group Plc Board consists of six members split into three Executive Directors, (Peter Borg-Neal, Executive Chairman, Dermot King, Chief Executive Officer, and Steven Kenee, Chief Investment Officer) and three NEDs (John Leslie, Non-Executive Vice-Chairman, David Sherratt, Non-Executive Director and Jane Bentall, Non-Executive Director).
Jane Bentall joined the Board on the 3rd of February. She began her career with KPMG before joining The Rank Group. She then joined Bourne Leisure, in 2000, where she rose to be the Group Finance Director as well as Managing Director of their Haven Holidays division. Jane left Bourne Leisure last year after the completion of a circa £3 billion sale of the business to Blackstone.
Peter Borg-Neal explained: “All three of our Non-Executive Directors are investors in the business, and it’s our intention is to add a fully independent NED to the Plc Board in due course and to form an Advisory Board made up of the investor Directors who were on the original Oakman Inns & Restaurants Ltd Board and other major shareholders. We might also invite specific individuals who can bring specialist knowledge to this Board. It is very important that the Group Board ‘directs’ rather than ‘manages’ the business. The day to day running of the Company will be undertaken by an Operating Board. The membership will be the twelve-person senior management team.”