Trading update

Barkby Group PLC

29 September 2023

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Barkby Group PLC

("Barkby," the "Group" or the "Company")

Trading update

Change of Accounting Reference Date

Barkby, (AIM: BARK) provides the following update on trading for the period to 30 June 2023 and advises of a change of accounting reference date.

Charles Dickson, Executive Chairman, said:

"In line with the stated strategy to refocus the business on Roadside Real Estate assets, I am pleased to report we have made good progress with the reorganisation of the Group.

"Since the beginning of 2023, we have built a significant pipeline of high-quality modern sustainable Roadside Real Estate developments which will comprise drive-thrus, trade counters, last mile logistics, convenience food, EV charging hubs and light industrial commercial uses.

"We continue to explore the funding options that will enable us to implement our strategy and look forward to providing further updates in due course."

OPERATIONAL HIGHLIGHTS

Real Estate

The Group's focus is to build and scale a high-quality, substantial portfolio of modern, ESG compliant Roadside Real Estate investments. Construction has progressed well at the Company's Wellingborough and Maldon developments:

·      Wellingborough achieved practical completion in May 2023 and is fully let, providing a contracted rent of £231,000 per annum across a total rentable space of 14,100 sq.ft. Occupiers include Greggs, Formula One Autocentres, City Plumbing Supplies and Brewers Decorator Centre.

·      Maldon is expected to reach practical completion in October 2023 and has a contracted rent of £280,000 per annum, 75.8% of which is index-linked with caps and collars, across a total rentable space of 14,200 sq.ft.

Two further developments are progressing in Swindon and Spalding, which are in line with the Company's strategy, targeted tenant mix and opportunities arising from the installation of EV charging infrastructure.

Update on disposals

As announced in July 2022, the Board determined to dispose of the Group's non-real estate businesses and investments. A summary of progress on disposals is as follows:

·      Completed sale of Workshop Coffee to its management team on 31 July 2023.

·      Centurian Automotive has wound-down trading activity from the start of the 2023 calendar year.

·      Cambridge Sleep Sciences, ("CSS") has made significant progress on its Software-as-a-Service license-based business model and agreed several global licensing deals. It continues to expand its pipeline of new licensee opportunities. A strategic review of the business is underway with the aim of evaluating the most appropriate corporate setting and structure for the company in the best interests of Barkby's shareholders. There can be no certainty that any offer or sale will ultimately be made for CSS or the value of any such proposed deal.

·      The Board is exploring options in relation to divesting Barkby Pubs.

The results of Workshop Coffee, Centurian Automotive, Barkby Pubs and Cambridge Sleep Sciences are presented as discontinued operations in the unaudited results for the period to 30 June 2023.

Trading update on disposal assets

Workshop Coffee

Workshop Coffee was sold on 31 July 2023. It made a net loss of £387,000 in the 12-month period to June 2023 (2022: loss of £785,000).

Centurian Automotive

Centurian Automotive wound-down its activity in 2023. The business made a loss of £624,000 in the

12-month period to June 2023 (2022: £622,000, excluding goodwill impairment).

Barkby Pubs

Two leases were surrendered in June 2023 and one freehold was sold in August 2023, reducing the number of pubs currently operated to six. Revenue at the retained sites remained steady in the period and labour cost percentages improved.

Overall, Barkby Pubs reported an EBITDA loss of £0.7m in the 12-month period to June 2023 (2022: EBITDA profit of £0.4m).

Cambridge Sleep Sciences

The business successfully adapted its revenue model to focus on Software-as-a-Service licensing, finalising several global license agreements which are expected to generate revenues in the next financial year.

The business incurred operating costs of £343,000 in the 12-month period to June 2023 and made a net loss of £477,000 (2022: loss of £760,000).

FINANCIAL HIGHLIGHTS

Results from continuing operations for the 12-month period to 30 June 2023 were revenue of £30,000 (2022: £10.30m) an operating loss of £1.27m (2022: £1.60m profit) and a net loss of £2.14m (2022: loss of £5.63m).

The loss for the period from discontinued operations, which includes Barkby Pubs, Workshop Coffee, Cambridge Sleep Sciences and Centurian Automotive was £3.05m (2022: loss of £3.91m).

Net cash available including undrawn facilities was £2.0m as at 30 June 2023.

Change of accounting reference date

The Company announces that it has changed its accounting reference date to 30 September. Accordingly, its current accounting period, which commenced on 3 July 2022, will now end on 30 September 2023. The change has been made to align the year end of all group companies with the market's reporting timetable.

As a result of the changes, the Company's financial calendar for the coming year will be:

30 September 2023	Extended 15 month financial period ends, (3 July 2022 to 30 September 2023)
No later than 31 March 2024	Audited annual report and financial statements for the extended 15 month financial period published
31 March 2024	End of new half-year
No later than 30 June 2024	Half-year results published (for the period from 1 October 2023 to 31 March 2024)
30 September 2024	End of new financial year

Barkby Group PLC

Unaudited Consolidated Statement of Comprehensive Income

	Year ended 30 Jun 23	Year ended 2 Jul 22
	Unaudited	Audited
	£'000	£'000
Continuing Operations
Revenue	30	10,298
Cost of sales	0	(5,846)
Gross profit	30	4,452
Administration expenses	(1,398)	(4,182)
Other operating income	98	83
Movement in fair values	0	1,250
(Loss)/profit from continuing operations before impairment of goodwill	(1,270)	1,603
Impairment of goodwill	0	(6,296)
Loss from continuing operations	(1,270)	(4,693)
Finance income	0	55
Finance expense	(870)	(989)
Loss from continuing operations before tax	(2,140)	(5,627)
Income tax credit	0	21
Loss for the year from continuing operations	(2,140)	(5,606)
Discontinued operations
Loss for the year from discontinued operations	(3,053)	(3,908)
Loss and total comprehensive income for the period	(5,193)	(9,514)
Loss for the year is attributable to:
Non-controlling interests included in discontinued operations	(118)	(190)
Owners of Barkby Group Plc	(5,075)	(9,324)
	(5,193)	(9,514)

Note: Audited results for the prior year ended 2 July 2022 show the results of Barkby Pubs as Continuing Operations

RESULTS OF DISCONTINUED OPERATIONS

30 Jun 23
12 Months	Cambridge Sleep Sciences	Barkby Pubs	Workshop Coffee	Centurian Automotive	Total
Unaudited	£'000	£'000	£'000	£'000	£'000
Revenue	6	6,561	1,777	5,876	14,220
Cost of sales	(18)	(4,419)	(1,030)	(5,665)	(11,132)
Gross profit	(12)	2,142	747	211	3,088
Administration expenses	(343)	(3,541)	(1,134)	(459)	(5,478)
Other income	0	0	0	0	0
Movement in fair values	0	0	0	0	0
Impairment of goodwill	0	0	0	0	0
Profit/(loss) before interest and income tax expense	(356)	(1,399)	(387)	(248)	(2,390)
Net finance costs	(130)	(166)	0	(377)	(672)
Income Tax expense	9	0	0	0	9
Profit/(loss) after income tax expense	(477)	(1,565)	(387)	(624)	(3,053)
02 Jul 22
52 Weeks	Cambridge Sleep Sciences	Barkby Pubs*	Workshop Coffee	Centurian Automotive	Total
Audited	£'000	£'000	£'000	£'000	£'000
Revenue	196	5,989	1,507	7,494	6,185
Cost of sales	(175)	(4,038)	(809)	(6,873)	(4,213)
Gross profit	21	1,951	698	621	1,972
Administrative expenses	(729)	(1,336)	(1,239)	(891)	(2,065)
Other income	(36)	83	20	8	47
Movement in fair values	0	0	0	0	0
Impairment of property, plant and equipment	0	0	(166)	0	0
Impairment of goodwill	0	(6,296)	0	(1,741)	(6,296)
Profit/(loss) before interest and income tax expense	(744)	(5,598)	(687)	(2,003)	(6,342)
Net finance costs	(104)	(281)	(98)	(360)	(385)
Income Tax expense	88	0	0	0	88
Profit/(loss) after income tax expense	(760)	(5,879)	(785)	(2,363)	(6,639)

* Audited results for the prior year ended 2 July 2022 show the results of Barkby Pubs as Continuing Operations

- Ends -

Enquiries:

Barkby Group Charles Dickson, Executive Chairman c/o Montfort Communications
Cavendish Capital Markets Limited (Nomad and Broker) Carl Holmes/Simon Hicks (Corporate Finance) Tim Redfern (ECM)	[phone]
Montfort Communications Olly Scott Georgia Colkin	[phone] [phone]

About Barkby

Barkby is a roadside real estate business focused on building and scaling a high-quality portfolio of modern, ESG-compliant assets.

 

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