Orchid Group has released results and financial statements for 52 weeks to 31 December 2011, showing significant progress for the company which operates 256 pubs and bars.
Rufus Hall, CEO reports that Orchid has continued to perform ahead of expectations for the first three quarters of 2012, despite the on-going pressure on consumer spending and the wettest British summer for 100 years. This resilient performance is the perfect platform for future growth driven primarily by the recently commenced £20m capital investment programme.
Highlights
• Turnover of £179.6m, up 3.7%
• EBITDAR of £40.6m
• Underlying gross margin improvement of £2.3m, or 1.9%
• Successful refinancing of the business with Deutsche Bank
• New capital investment programme of £20m commenced. Orchid currently has six businesses on site and by the end of the year will have invested £1.9m in 19 Repositioning and Shine investments.
• Voted 5th Best Big Company to Work For by The Sunday Times (2nd successive year in Top 25)
Food now accounts for over 40% of sales mix, up from 28% in 2006, reflecting the focus on food-led occasions and recognising changing customer trends.
Staff turnover – a key measure for the business – reduced by 9% during the year, with the trend continuing in 2012.
Apprenticeships; seeking to grow to 150 in the next 12 months. The advent of apprenticeships in the industry provides an exciting opportunity to develop the General Managers and Area Managers of tomorrow.
Investors in People Gold Standard Accreditation: given the success in ‘The Sunday Times Best Big Companies to Work For’ in 2010 and 2011, Orchid will seek to achieve this standard.
One of Orchid’s core values is to ‘Respect Every £ We Spend’ and the Group continues to challenge every line of the P&L:
• Reducing energy consumption by 7.8% through focusing on usage
• Expenditure on labour has remained the same year-on-year, whilst customer satisfaction levels (as measured by Net Promoter Score) have improved significantly
• Gross margins up by £2.3m despite increases in Duty and VAT
• Central overhead savings of 9% delivered through ‘Challenging the Status Quo’