Vaulkhard Group, the company behind Newcastle venues including Bealim House, Barluga on Grey Street, Wylam Brewery, The Bridge Tavern and Redhouse, has reported increased earnings despite widely publicised challenges in the hospitality industry.
Newly filed accounts show turnover grew by 1% last year to more than £19m, while operating profit rose from £1.61m to £1.71m. EBITDA, a measure of earnings that strips out accounting processes, increased from £1.8m to £2.2m.
Portfolio consolidation and freehold acquisition
The group described last year as a period of consolidation following time spent on deals to arrange its portfolio of 13 businesses, which also includes coffee shops Central Bean and Blakes. During the year, Vaulkhard acquired the freehold of Barluga on Grey Street, a site it has operated for more than two decades, as part of a strategy to acquire trading freehold properties.
Boss on employment costs and 2027 outlook
Boss Ollie Vaulkhard said he and fellow directors, including his brother Harry, were particularly pleased with the work that had gone into producing the results, showing progress and resilience in the face of well-known challenges. He reiterated warnings that Government-imposed employment costs ultimately impacted the business's ability to invest.
Writing in the accounts, Mr Vaulkhard said: "The hospitality industry, continues to be a large employer in the UK and during the year, the group employed over 350 people in the North East of England. Because of this, any Government imposed increase in employment costs materially impacts the business and undoubtedly impacts future investment."
He added: "The board constantly reviews the impact of these additional cost pressures and reacts where possible to ensure that the business remains competitive. Because of this continuous review the board believes that, as we approach the final quarter of FY26, the group is well placed to overcome these challenging market conditions and overall increase in costs."
Mr Vaulkhard concluded: "The repositioning of the portfolio in recent years and investment into the groups trading properties give the board confidence as we look toward 2027 and beyond."
