TIDMBARK
RNS Number : 7020H
Barkby Group PLC
28 November 2022
28 November 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 and an update on
the Group's future strategy.
Trading Update
Barkby Real Estate
-- The focus of the Group remains on building and scaling a
high-quality, substantial portfolio of modern, ESG compliant
Roadside real estate investments.
-- Since July construction has progressed well at our commercial
schemes at Wellingborough and Maldon.
-- Wellingborough is scheduled to complete construction next
month and it is our intention to hold the development on our
balance sheet as an investment as we grow a high-quality commercial
property portfolio.
o The total contracted rent is GBP234,000 per annum with
contracted tenants being Greggs Plc, Formula One Autocentres Ltd,
City Plumbing Supplies Holdings Ltd and C. Brewers & Sons Ltd.
The WAULT is 12.9 years and all leases are RPI or CPI linked.
-- Maldon is scheduled to complete construction by April 2023,
we will also hold this development on our balance sheet.
o The total expected rent is GBP268,000 per annum with
contracted tenants being Costa Coffee Ltd, Formula One Autocentres
Ltd, Toolstation Ltd with the remaining unit under offer. The WAULT
is 12.1 years and all leases are RPI or CPI linked.
-- A revised planning application has been submitted for a
27,000 sq.ft. scheme at Swindon, we expect decision in Q1 2023. The
scheme will be anchored by a national Drive Thru operator with a
trade and industrial occupiers taking the remainder of the
site.
-- Given downward valuation pressure in the commercial property
market over the last 6 months we are seeing high quality assets, at
attractive valuations, becoming available with a lot less
competition to acquire.
-- We are seeing a significant opportunity to scale our
pipeline, and are in negotiations on a number of new Roadside
developments and investments. We are targeting increasing our
ongoing pipeline to GBP200m.
Barkby Pub Co
-- Revenue 3% down year on year compared with Q1 2021, broadly
in line with the overall sector as household spending
decreases.
-- Christmas bookings look strong and we remain optimistic for a
strong festive trading period.
-- Addition of the Eliot Arms pub at South Cerney to take the
pub estate to nine units and 75 bedrooms.
-- Majority of our energy contracts were fixed in December 2020
until December 2023, so the business is well protected from the
wider energy cost pressures facing the industry.
-- Inflationary pressures on labour, food and drink margins are
in line with the wider hospitality sector.
-- Whilst we continue to grow the pub portfolio the Board
continues to review future strategy of the PubCo.
Barkby Investments
-- As previously announced, we completed the sale of the Verso
Biosense stake for GBP2.6m in August 2022.
-- Following our announcement to sell our non-core businesses in
July 2022, we provide the following update:
o Workshop Coffee - a sales process was launched in September
2022. This has coincided with a strong recovery in the business as
it returns to pre-pandemic levels. The sales process is
progressing, with discussions ongoing with a number of interested
parties under NDA.
o Centurian Automotive - the business will be transferred out
the Group on the 1 January 2023, with the existing management team
acquiring the ongoing business for nil overall consideration.
o Cambridge Sleep Sciences - over the summer CSS has developed
several significant licensing opportunities with global technology
companies for the IP behind SleepHub. The previously launched sales
process has been paused whilst these opportunities progress. The
Board believes that completion of these licensing opportunities
will have a material impact on the potential valuation of the CSS
business.
Future Strategy
In our July 2022 update the Board announced it had determined to
focus on roadside property development and investment and to
dispose of all the Group's other businesses and investments. As we
move towards implementing this strategic change, we expect that all
non-core businesses, including Barkby Pub Co. Ltd will not form
part of the Group moving forward.
In recent months, we have met a number of prospective
institutional investors and have received positive feedback around
scaling our Roadside property investment and development business
and continue to explore doing so. The Group continues to look at
several routes to maximise the opportunity this pureplay real
estate strategy presents and is considering funding options,
including both equity and debt to take advantage of the pipeline of
opportunities highlighted above. We are also reviewing the most tax
efficient way of holding a high-quality, substantial portfolio of
modern, ESG compliant Roadside real estate investments, including
becoming a REIT . We are also looking to further strengthen the
Board as we make this pursue our focused roadside strategy.
Debt Re-financing
As we look to expand our real estate business and hold existing
developments, we have in principle agreed a re-financing of the
existing Tarncourt facility from GBP5m to GBP10m with expiry being
extended from 30(th) June 2023 to 30(th) June 2024. A separate
announcement will be made once all the terms have agreed, and the
documentation has been finalised. The re-financing will go to
strengthen the Group's balance sheet and working capital.
Results
We expect to release our full year results in December 2022.
Commenting, Charles Dickson, Executive Chairman, said:
" Follow 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 focussed on scaling the real estate business, with a
particular focus on high quality modern sustainable roadside
developments in the form of d rive-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."
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
and Cambridge Sleep Sciences).
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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