South West brewery and pub group Butcombe has reported an “exceptionally strong” financial year, with growth across its entire pub estate, but has cautioned that the trading environment is becoming “less certain” due to rising inflation and low consumer confidence.
Financial Performance
For the year ending January 31, 2026, the company achieved underlying group EBITDA of £15 million, a 9.1% increase compared to the previous year. Managed pub EBITA surged by 23%, while like-for-like sales rose by 8%. The boutique inns segment delivered 12.5% like-for-like growth, and brewing and drink sales increased by 5% over the period.
CEO Commentary
Jonathan Lawson, chief executive of Butcombe Group, described the performance as “very strong” and noted that the growth was particularly impressive given that it followed a year of significant momentum. “We continue to build a leading, premium pubs and boutique inns business, allied to a first-class beer, brands and drinks operation, all underpinned by operational excellence, innovation and strategic investment, with strong momentum as we head into our new financial year,” he said.
Inflation Warning
Despite the positive results, Butcombe warned that the current trading environment is “less certain” than six months ago. The group cited low consumer confidence and the likelihood of rising inflation in the second half of the year, particularly on food costs. “We will do our best to protect our customers from these pressures and take a long-term view on what is the right thing for our business, an approach that has served us well over the last five years with the support of Caledonia,” the company stated.
First Quarter Trading
Trading in the first quarter of the current financial year has been in line with expectations. Managed pubs saw like-for-like growth of 3.6%, with food up 3.7%, drink up 3.1%, and accommodation up 5.8%. Accommodation occupancy reached 74%, a 1.6% improvement year-on-year.
Recognition
In May 2026, Butcombe was named among the 22 best companies to work for in the West of England by the Sunday Times. The group operates 118 pubs and inns and employs more than 1,800 people.
