RedCat Pub Company is set to invest an additional £10–£12 million in upgrading its estate over the coming year, as part of its ongoing capital expenditure programme.
This investment follows a challenging year for the pub group, which placed its 10-site leased pubs division into administration last year.
To stabilise the business, a £61 million refinancing deal was secured last summer. The group also committed to investing £8 million into refurbishments, staff training, and expanding its food, drink, and accommodation offerings across the wider business.
RedCat, which operates more than 90 pubs, reported a rise in turnover from £120.5 million to £129.8 million for the 12 months ending 31 March 2024. However, adjusted EBITDA fell to £2.2 million, down from £3.6 million in the previous year.
Despite ongoing economic challenges, the group stated it expects “improved trading” across its portfolio in the 2024/25 financial year.
RedCat was founded in 2021 by former Greene King chief executive Rooney Anand, aiming to capitalise on the wave of pub sites becoming available in the wake of the pandemic.
The company quickly expanded to over 90 sites and acquired the 18-site Coaching Inn Group in 2021.
In the company’s accounts, RedCat director Mike Rothwell noted that current economic challenges could present further opportunities for the group to acquire new sites.
He added: “External factors continue to influence ongoing trading, while also creating further acquisition opportunities. Geopolitical events affecting energy prices, input costs and the cost of living are undoubtedly an ongoing challenge for the whole hospitality sector.
“While not immune to these serious headwinds, the group continues to adapt working with our suppliers to improve procurement, our brokers to manage our energy costs effectively and ensuring that our business is as efficient as possible while still providing great customer experiences.”
RedCat will reopen the Castle of Brecon hotel in Wales this month after completing a £3 million refurbishment.
The hotel, which is part of the Coaching Inn portfolio, is set within the remains of Brecon Castle. It closed in October 2024 for a complete renovation, including its 42 bedrooms, 103-cover restaurant, bar, and public areas.
Over the past year, RedCat has sold 12 smaller pubs and acquired four sites from its leased pubs division after it went into administration.
