An expanding pub business with three premises in Brighton and Hove has reported annual sales totalling almost £1 million in its first full-year financial results.
Mash Inns recorded an operating loss of £52,000 and a pre-tax loss of £110,000 on turnover of £997,000 in the year to Saturday 30 September. The company was set up in February 2016.
The business is a joint venture between Brighton and Hove’s biggest pub operator, the Laine Pub Company, and Enterprise Managed Investments, part of Ei, the leading national pub-owning chain formerly known as Enterprise Inns.
The Laine Pub Company owns 49 per cent of Mash Inns which, in turn, operated two pubs in the financial year to the end of September.
They were the Old Albion, formerly the Albion, in Church Road, Hove, and the Ladywell Tavern, in Lewisham, south London, which are both on 25-year operating leases.
Rents are based on a percentage of each pub’s turnover.
Since the financial year end two Brighton pubs have been added to the Mash Inns portfolio.
Mash Inns agreed a 25-year operating lease with the Branch Tavern, in London Road, in February this year.
And in April it signed a 25-year operating lease with the Saint George’s Inn, in Upper Sudeley Street, Kemp Town.
The annual accounts for Mash Inns were filed with Companies House on Friday (29 June).
They included a directors’ report which said: “The loss before tax for the year amounted to £110,000 (32-week period ended 30 September 2016: £11,000) primarily due to administrative costs incurred establishing the business operations.
“The directors do not recommend the payment of a dividend.”
The directors include Gavin George, 52, and Gary Pettet, 57, who are also directors office the Laine Pub Company.
Notes to the accounts included details of “related party disclosures” which said: “Mash Inns Limited made payments of £73,000 (2016: £27,000) to the Laine Pub Company Limited in relation to company management fees and various other recharges including repairs and renewals.
“At the period end a balance of £13,000 (2016: £9,000) was due to the Laine Pub Company Limited.
“Mash Inns Limited made trading purchases of £192,000 (2016: £64,000) from Ei Group PLC in relation to rent, drink products and various other recharges including insurance.
“Further recharges from Ei Group PLC of £453,000 were incurred in relation to the properties managed by the company, which were capitalised into tangible and intangible assets.
“The company also drew down £873,000 (2016: £nil) of a capital expenditure loan facility from Ei Group PLC and used some of the proceeds to repay the recharge noted above.
“The loan is due to be repaid from free cash flow generated by Mash Inns Limited. The loan has no fixed maturity and is non-interest bearing.”
Mash Inns is one of ten managed joint venture partnerships operated by Ei Group.
