Oakman Inns promotes Dermot King to CEO as Peter Borg-Neal becomes executive chairman

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Dermot King has been promoted to CEO of Oakman Inns, having previously occupied the role of COO.

Oakman's current CEO, Peter Borg-Neal, will move to the role of executive chairman from 1 August; with the group's current chair, Mike Smith, stepping down from the position, but remaining on the board in a non-executive role.

“I am honoured and delighted to become CEO of such an outstanding business," says King.

"Having spent the last eighteen months working alongside Peter and the team I genuinely believe there is no limit to what we might achieve.

“We remain deeply ambitious for the Company and as market leaders in the growing Premium pub sub-sector, we believe that the opportunities ahead of us for this deeply talented team, are very exciting.”

The group, which owns and operates 28 sites, has also given a financial update, which says that prior to the impact of the Coronavirus pandemic, Oakman was 'trading well', with like-for-like sales up 4.3% year to date and total sales up 14.3%.

However, the sudden closure of the business in week 38 of the financial year means that for the year ending 30 June, sales of £31.5m+ represent a decline of 17.3% over the previous year.

“The sudden closure of the business and the subsequent unwinding of the working capital position put the business under considerable financial strain," says Borg-Neal. 

"However, in addition to Government funding, supportive trade creditors, lenders and landlords gave the management team sufficient breathing space to resolve the company’s funding in the medium-term."

Borg-Neal adds that Oakman has been able to complete a £1.8m equity raise from existing shareholders, and has secured a £2.1m Coronavirus Business Interruption Loan from Santander.