Barkby Group to dispose of pub estate
A trading update released today (Monday 28 November) has revealed the group’s “non-core businesses”, including Barkby Pub Co, will be disposed as it looks to “focus on roadside property development and investment.”
However, it is expected the Group will keep its core business of premium gastropubs.
The update showed revenue was down 3% year-on-year for the pubco “broadly in line with the overall sector as household spending decreases”.
Significant opportunity
This comes as last week the group announced it had acquired the Eliot Arms pub at South Cerney, Gloucestershire, taking its pub estate to total nine sites and 75 bedrooms.
While the trading update stated the pubco’s energy contracts were secured until December 2023, it claimed inflationary pressures on labour as well as food and drink margins were in line with the “wider hospitality sector”.
The group also started Christmas bookings across its portfolio of pubs looked “strong” and that it “remained optimistic for a strong festive trading period” as it continues to review the future strategy of Barkby’s pubco.
According to the trading update, Barkby has seen “significant opportunity” and is in negotiations on a “number” of new roadside developments and investments, targeting increasing its ongoing pipeline to £200m.
Good progress
Barkby Group executive chairman Charles Dickson said: “Following on from our July announcement we have made good progress in streamlining the Group.
“We have completed the sale of our stake in Verso Biosense and made further progress exiting the remaining non-core businesses.
“We remain focused on scaling the real estate business, with a particular focus on high quality modern sustainable roadside developments in the form of drive-thru's, trade counter, last mile logistics, convenience food, EV charging hubs and light industrial commercial buildings.
“Our view is that this strategy, once scaled, has the ability to deliver double digit annualised total accounting returns."
