Redcape records strong first-half earnings

17 February, 2021 by Andy Young

The Redcape Hotel Group has reported its financial results for the half-year ended 31 December 2020, with increases in revenue, earnings and statutory net profit after tax.

Redcape reported distributable earning for the period of $32.9m, up 24.6 per cent, which the group said demonstrates “the resilience of its business during the recent restrictive operating conditions”. The uplift was driven by a 9.7 per cent increase in like-for-like revenue across its portfolio of community pubs in suburban and regional locations.

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Operating EBITDA increased 5.7 per cent to $40.9m while statutory net profit after tax was up 45.9 per cent to $25.4m.

Looking ahead Redcape said it is continuing to trade positively in the second half, with four recent acquisitions being on boarded into the group, helping to increase market share.

CEO Dan Brady said: “We have been able to not just survive but thrive during 2020, which is reflected in our record first-half performance. Our business is trading positively demonstrating the resilience of our community and customer-centric business model, strong operating platform and calm, deliberate and disciplined approach to returning to strategy.

“Our focus on customer engagement has resulted in increased revenue and reinstatement of distributions showcasing our ability to run community pubs and drive a strong operating performance. Our lead indicators of staff satisfaction and customer NPS metrics are at record levels as we continue to invest in our people, empowering our team to enrich their local communities through hospitality.

“We have a high level of confidence in the future performance of our business and our strengthened balance sheet positions us well to maximise our pub performance, seek acquisition opportunities and to deliver sustainable growth in future periods.”