(Alliance News) - Barkby Group PLC said on Friday it had widened its loss in a year hit by the pandemic.
For the year ended July 1, Barkby reported a widened pretax loss of GBP4.4 million from GBP3.1 million in the previous financial year.
The Oxfordshire-based commercial property and pub investor said that revenue was up 26%, rising to GBP15.1 million from GBP12.0 million in financial 2020.
In property development, Barkby said the impact of Covid had delayed the start of multiple planned developments, with tenants taking longer than normal to agree commercial terms. Barkby said its current pipeline includes five active developments with gross development value of GBP30 million.
In regards to Barkby Pub Co, Barkby said it had been significantly impacted by Covid, making an operating loss of GBP100,000.
Barkby said that the segment recovered quickly when lockdown restrictions were lifted due to its large footprint properties being able to operate in a Covid-secure way with minimal interruption.
The company noted that it had also experienced increased demand for domestic holidays from UK residents as a result of reduced confidence and appetite for international holiday travel alongside enforced travel restrictions.
Barkby's investment into Workshop Coffee, a coffee roaster operating four coffee shops, was impacted in a similar way due to the pandemic. The business reported an operating loss of GBP600,000.
Its automotive dealership business, Centurian Automotive, also reported a loss, generating a net loss of GBP66,000 for the year which Barkby blamed on the impact of the pandemic.
Barkby's other investments, Cambridge Sleep Sciences and Verso Biosense Ltd, had seen positive progress, the company noted.
Cambridge Sleep Sciences' Sleep Hub product, which delivers sounds to hep improve sleep, was launched in Harrods, Selfridges and on Amazon. Verso Biosense had seen engineering breakthroughs and moved onto clinical study in regards to its uterine monitoring platform.
Looking forward, Barkby noted the company was in a period of "significant" economic uncertainty as the potential impact of Covid-19 variants remains present. Barkby said it has therefore prepared a profitability and cash flow forecast to June 2023 incorporating assumptions that reflect a severe but plausible downturn scenario.
"As we come out of lockdown, management considers that the pubs and coffee business are well positioned for a return to profitability and that the group is in a strong position to benefit from the lifting of government lockdown restrictions," the firm said.
Shares in Barkby were down 3.5% at 18.58 pence on Friday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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