It reflected a challenging trading environment impacted by civil unrest and fragile consumer confidence, the business said in its latest trading update, published on Companies House earlier this week.
Despite a net loss of £644,000, the Cheshire-based business delivered site earnings before interest, taxes, depreciation and amortisation (EBITDA) of £9m.
Gross profit stood at £25.7m for the period, down slightly from £26.2m last year, and operating profit was £284k (2024: £1.5m)
Loss before tax increased from £1.1m to £2.1m in FY25 compared to FY24.
Cocktail heritage
Exceptional costs rose to £1.5m, driven by restructuring of its central operations and sales teams and venue closures, alongside a £1.3m impairment charge for underperforming sites.
The experiential bar group introduced a number of site-level efficiencies to optimise labour margins and improve energy usage.
It employed an average of 966 staff, down from 1,069, with total wage costs of £20.5m.
On its balance sheet, the Alchemist reported £2.94m in cash and £5.03m in net assets, supported by £20.5m in fixed assets and £10m in current assets.
Cocktail heritage remains at the heart of the group’s identity, the report stated, with the brand having opened a new venue on Eastcheap in February complete with a standalone Negroni bar.
Robust shape
Directors were confident in the brand’s resilience and long-term growth strategy, underpinned by operational efficiencies, brand partnerships and continued investment in innovation and sustainability.
The trading update said: “The business remains in robust shape. Gross margins were maintained thanks to excellent control of food and liquor costs, and the directors are confident that strong decisions taken during the period have protected the long term ambitions to grow the brand both in the UK and overseas.”
The Alchemist, which was a finalist in the 2024 Publican Awards Best Drinks category, currently operates 23 bars across the UK and one in Berlin, Germany, with plans to expand its estate significantly over the next decade currently underway.
It was founded in Manchester by restaurateur Tim Bacon in 2010 and is currently overseen by CEO Simon Potts.
