TIDMBARK
RNS Number : 7038S
Barkby Group PLC
18 July 2022
18 July 2022
Barkby Group PLC
("Barkby", the "Group" or the "Company")
Trading and Strategy Update
Barkby Group PLC (AIM:BARK), the diversified business group, is
pleased to provide the following update on trading for the
financial year ended 2 July 2022 and an update on the Group's
future strategy.
Financial Performance
Group revenues are expected to increase by c.29% to GBP19.4m,
with EBITDA returning to a positive contribution of GBP1.6m for the
year. As set out in further detail below, the Board has resolved to
dispose of certain of the Group's non-core divisions and
investments, and these will be deemed as discontinued operations in
the Group's financial statements. It is expected that the
continuing core business will report revenue of GBP10.4m and EBITDA
of GBP2.5m for FY2022*.
Barkby Group Barkby Group - Continuing
Operations
2022 2021 2022 2021
------- ------ ------------ --------------
GBPm GBPm GBPm GBPm
------- ------ ------------ --------------
Revenue 19.4 15.1 10.4 2.8
------- ------ ------------ --------------
EBITDA 1.6 (2.5) 2.5 (1.5)
------- ------ ------------ --------------
Net Profit* (0.8) (4.4) 1.6 (2.5)
------- ------ ------------ --------------
* Financial expectations noted above are preliminary, and
subject to year-end financial close and audit review processes
Operational Highlights
Barkby Real Estate
-- Focus on building and scaling a substantial portfolio of
modern ESG compliant real estate investments
-- GBP31m GDV development pipeline in construction or legally committed
-- Completion of the sale of Saffron Walden for GBP3.45m on 31 May 2022
-- Construction has commenced on our commercial schemes at Wellingborough and Maldon
-- Planning applications have been submitted at Huntingdon and
Swindon and we expect decisions over the summer
Barkby Pub Co
-- Revenue up 122% to GBP6.0m (FY2021: GBP2.7m) benefitting
strongly from normalised trading and pent-up demand post
COVID-19
-- EBITDA of GBP0.5m (FY2021: loss of GBP1.4m)
-- Addition of The Coach and Horses at Chiselhampton to take the pub estate to eight units
-- Board considering future strategy for Barkby Pub Co
Barkby Investments
-- Entered into a binding agreement for sale of the Group's
stake in Verso Biosense Group Ltd for GBP2.6m in cash, being the
total cost of the investment to date. This is expected to complete
in August.
-- The Board has resolved to sell and is actively marketing the
following businesses and investments;
-- Workshop Coffee
-- Cambridge Sleep Sciences
-- Centurian Automotive
Future Strategy
Following the exceptionally challenging trading conditions
brought about by the COVID-19 pandemic, the return to more
normalised trading conditions has seen all of the Group's divisions
return to a positive trajectory and the Board is now in the process
of an evaluation of the Group's ongoing strategy.
To date, the Group's performance has been underpinned by the
property development business, which focuses on capital light
property development in roadside developments. These developments
have usually involved securing options over land and then obtaining
planning permission, securing tenants and overseeing construction
financed by non-recourse debt. Completed developments have been
sold to financial investors for a total value of c.GBP10.5m since
IPO. The Directors now believe that there is an attractive
opportunity to focus the Group's primary resources on this
division.
The Directors believe there is an opportunity to hold completed
developments rather than sell to a financial investor and to
acquire further developed sites. It is anticipated that these sites
will be primarily modern roadside developments with strong ESG
credentials that are able to meet the increasing demand from retail
outlets for drive through or out of town locations. The Group is
currently exploring a number of routes to maximise the opportunity
from pursuing this pureplay real estate strategy and considering
funding options, including both equity and debt.
In the short term the Board has resolved to dispose of all the
Group's other businesses and investments, with the exception of
Barkby Pub Co. The proceeds from these disposals will be used to
invest in the real estate strategy and reduce the debt on the
Group's balance sheet. The disposals will also ensure that the
Group is clearly focused on roadside property development and is
more likely to be attractive to new investors.
Further details of the new strategy and progress with the
disposals will be provided when the financial results for the year
ended 1 July 2022 are announced. This is currently expected to be
in October 2022.
Commenting, Charles Dickson, Executive Chairman, said:
"I am delighted to report that Barkby has enjoyed a record year
in terms of revenue and EBITDA, with the Group benefitting from the
easing of COVID restrictions and a resulting swing back to EBITDA
profitability.
"We listed on AIM in January 2020, just before the start of the
COVID-19 pandemic and have had our first two years as a listed
business heavily disrupted by this. As we now emerge from this
period, we are determined to focus on scaling our existing and
established real estate business, with a particular focus on ESG
compliant roadside developments in the form of d rive-thru's, trade
counter, last mile logistics, convenience food and light industrial
commercial buildings. We will therefore be exiting our non-core
assets and businesses over the coming months.
The performance of the Group since the lifting of all COVID-19
related restrictions in February 2022 has been hugely positive and
we look forward to the next financial year with confidence. We look
forward to providing shareholders with more detail in October when
we release our full year results."
Enquiries:
Barkby Group PLC
Charles Dickson, Executive Chairman
Douglas Benzie, Chief Financial Officer
+44 (0) 20 7220
finnCap Ltd (Nomad and Broker) 0500
Carl Holmes/Simon Hicks (corporate finance)
Tim Redfern/Richard Chambers (ECM)
+44 (0) 20 3757
Camarco (Financial PR) 4994
Jennifer Renwick/Phoebe Pugh
Notes to editors
Barkby Group PLC is a diversified group of high growth, high
quality businesses run by an entrepreneurial and experienced
management team. The existing wholly owned businesses units within
Barkby include; Barkby Real Estate, Barkby Pub Co. and Barkby
Investments (Comprising of Workshop Coffee, Centurian Automotive,
Cambridge Sleep Sciences and a minority stake in Verso
Biosense).
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (596/2014/EU) as it
forms part of UK domestic law by virtue of the European Union
(withdrawal) act 2018 ("MAR").
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END
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