12 hours ago
Brewdog halts flotation plans to focus on growth
Brewdog has rowed back on plans to become a public company as its new chief executive plots a return to growth underpinned by 'sensible financial discipline' .
A flotation has long been mooted for the maker of craft beers such as Punk IPA and Elvis Juice with suggestions of a valuation of about £2 billion.
James Taylor, who stepped up from chief financial officer in March this year, said an initial public offering was 'not on the agenda at the moment' as the company moved back into profit under its preferred metric for the first time since 2021.
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Brewdog pointed to a growing share of the UK beer market along with a strong performance in Australia and the United States. Net revenue, which does not include excise duty, for last year came in at £280 million, which was flat on the previous 12 months.
The company said its adjusted earnings before deductions were £7.5 million last year, compared with a loss of £2.5 million in the previous year. It booked a pre-tax loss of £59.2 million in 2023, which included an impairment charge of about £14 million.
Brewdog declined to give a pre-tax figure for 2024 but Taylor confirmed that there would be a loss under that measure and there would be no dividend paid for the year. He also said that the plan was to get back into top-line growth this year and improve profitability.
Brewdog was founded by James Watt and Martin Dickie in Aberdeenshire in 2007 and the pair established a reputation for unconventional marketing methods and raising tens of millions of pounds through crowdfunding.
It still has its headquarters and main brewery in Ellon, Aberdeenshire, but has other brewing sites in Australia, Germany and the United States. It runs more than 120 bars and hotels around the world employing about 2,400 people.
Last year Brewdog secured a deal with Marylebone Cricket Club to provide beer at Lord's cricket ground and more recently became the official partner for West Ham United at the London Stadium.
Lauren Carrol, the chief operating officer, said Brewdog continued to look for other opportunities at festivals and stadiums where partners wanted to do more than 'just slap our logo on something'.
Watt and Dickie retain stakes in the business and are still directors but they have stepped back from day-to-day operations.
The culture of the business was criticised in 2021 after an open letter from staff outlined a toxic atmosphere and a culture of fear.
Watt denied claims of inappropriate behaviour but vowed to learn lessons. Allan Leighton, best known for his roles at Asda, was brought in as Brewdog chairman and a wide-ranging review was held.
James Watt stepped down in May last year
ALAMY
Watt, who married the TV personality Georgia Toffolo in March, stepped down as chief executive in May last year and was replaced by James Arrow. Arrow departed for personal reasons in March and Taylor took over.
Taylor said the company was 'way beyond' the historic allegations of poor culture and pointed out that 200 staff had been trained as mental health first aiders last year. He added: 'We are absolutely determined to give our employees the best experience they can have.'
