TIDMBARK

RNS Number : 1500X

Barkby Group PLC (The)

30 April 2021

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.

30 April 2021

The Barkby Group PLC

("Barkby" or the "Company")

   Interim Results   for the 26 weeks ended 31 December 2020 

The Barkby Group PLC (AIM:BARK), the diversified business group, announces its unaudited interim results for the period ended 31 December 2020.

Charles Dickson, Executive Chairman of the Barkby Group, commented:

"Barkby has weathered the COVID-19 pandemic largely due to the success of our highly cash generative commercial property development business. Activity within that division is returning to pre-pandemic levels with a number of new opportunities in the pipeline.

As the economy reopens, our pubs and coffee business are poised for significant growth and a return to profitability. All of our pubs opened on the 12(th) of April for outside service only and trading has been very encouraging. We are also seeing strong accommodation bookings for May 17(th) onwards, which is a positive sign for future demand.

The Group's investments in SleepHub and Verso Biosense are performing well with both businesses recently announcing significant new collaboration agreements.

Our diversified structure and strategy has allowed us to support the most heavily impacted businesses without a significant increase in external bank debt or equity funding from shareholders. As previously announced, the Tarncourt lending facility, which was put in place at the point of the IPO, has been increased to GBP5m to provide further liquidity.

The Group is in a strong position to benefit from the further lifting of government lockdown restrictions. We look forward to the next 12 months with increasing confidence, while recognising uncertainties remain."

OPERATIONAL HIGHLIGHTS

Commercial property division

-- Practical completion of Hastings development in August 2020 and completion of sale to Hastings Borough Council, with a net balancing payment receipt of GBP1.8m.

   --       Exchange of contracts to sell our site at Saffron Walden for GBP2.85m. 
   --       Exchange of contracts to acquire prime development site in Maldon, Essex. 

-- Planning permission for 20,000 sq. ft. mixed use retail and trade scheme received at Wellingborough.

Barkby Pubs

-- Reopenings in July and September were well supported and demonstrated popularity and resilience of venues.

-- All six sites open for outside service on 12 April 2021 and trading has been very encouraging.

-- Like-for-like sales down 3% between 1 July and 30 September 2020, however excluding July like-for-like sales were +21% in August and +24% in September.

-- Like-for-like sales down 45% between 1 October and 31 December 2020 following re-imposition of trading restrictions.

   --       Acquisition of a nine-year lease of The Harcourt Arms in September 2020. 
   --       Well positioned offering for general re-opening on 17(th) May 

Life Sciences

-- Commercial launch of SleepHub in November 2020 with eight new commercial partnerships secured post period end.

-- Vivoplex renamed to Verso Biosense and post-period end has signed two collaboration agreements.

FINANCIAL HIGHLIGHTS

-- Revenue for the 26 weeks to 31 December 2020 was GBP7.8m, with EBITDA loss of GBP1.2m and a net loss of GBP2.0m. This includes start-up expenses of GBP0.5m incurred in relation to Cambridge Sleep Sciences.

-- Following repayment of HSBC overdraft of GBP1.5m, GBP2.7m of new facilities have been secured including a GBP1.5m increase in the Tarncourt facility to GBP5.0m and an extension of its repayment date to 30 June 2023.

   --       Net cash available including undrawn facilities was GBP1.5m as at 31 March 2021. 

CHAIRMAN'S STATEMENT

I am pleased to announce the interim results for The Barkby Group PLC for the period ended 31 December 2020.

Over the last six months our primary focus has been the wellbeing of our staff and customers, and I would like to thank our team for their unwavering commitment during this unprecedented period. Despite the obvious challenges that the first half of the year presented, the team worked hard to position the business appropriately and we are looking forward to the future with confidence as the economy begins to unlock.

During the six months to 31 December 2020 our pub venues reopened twice, in July and December, following the lifting of the UK Government restrictions in place at that time. The Board was encouraged by these reopening processes, which saw customers returning across all venues, demonstrating the popularity and resilience of our venues. The Board believes that this is a positive indicator for when we are able to fully reopen.

The opportunities that Barkby is seeing in the hospitality sector, in terms of available sites and potential business acquisitions, are even stronger than the Board had anticipated at the time of the Company's admission to AIM. The Board is confident that the current dynamics in the hospitality property market will allow the Group to secure new sites at significantly reduced rents and with lower capital costs per site.

All of our pubs have now reopened for outside service only and early trading has been very encouraging. We are also seeing strong bookings from 17 May onwards and the Board is optimistic that trading conditions will remain strong over the summer months due to pent up demand and staycations.

At Centurian, a contactless test drive procedure was implemented in response to lockdown restrictions, including personalised videos sent to customers before site visits. A "click and collect" sales model proved to be effective, and in many cases produced faster purchase decisions. We also invested in our digital marketing and social media platforms, which has aided the revenue growth.

Centurian was profitable at EBITDA level for the 26-week period to 31 December 2020 and trade remains strong, however given the uncertainty around consumer behavior we will continue to monitor performance carefully.

The Group also continues to deliver on its strategy of investing in growth businesses with the ability to disrupt. Investments in SleepHub and Verso Biosense are performing well, with significant commercial progress being made at both companies. I am particularly excited about the potential of both businesses to supplement Group earnings for FY2022.

Our liquidity remains strong and the diversification of the business means that the Group is in a strong position to benefit from the lifting of government restrictions. I look forward to the next 12 months with increasing confidence.

Current Trading

Further to our trading update of 3 March 2021, the Group makes the following updates:

Commercial Property Development

We are seeing the market return to pre-pandemic levels and we have six major tenants due to sign agreements to lease units in two of our pipeline development sites. We are also seeing more opportunity in the market and are looking to significantly grow our development pipeline over the next six months.

Saffron Walden

The land was acquired by the Company in 2010 and is still held at book cost. A series of successful planning applications have been made since the land was acquired, and the site now has planning permission for the construction of 35 residential units. We have exchanged contracts to sell the site for c.GBP2.85m which will result in a profit on sale of GBP1.8m, which is expected to be recognised in the current financial year. Completion of the sale is expected during the summer of 2021.

Wellingborough

We have made a further planning application to add a drive-thru fast-food restaurant on the front of the site to meet a pre-identified requirement from a national branded operator. Construction is due to start in autumn 2021.

Maldon

We have now submitted a planning application to develop a 15,400 sq. ft. mixed-use retail and trade scheme at the site. We are planning to start construction towards the end of the year.

Huntingdon

We submitted a planning application for a 30,000 sq. ft trade scheme at Huntingdon last year and have subsequently amended the application to take into account the change in tenant requirements. We expect to receive planning this year and commence works in 12 months' time.

Further opportunities

We are currently in legal negotiation to acquire a further development site in the South East. We are also actively exploring opportunities to significantly expand the real estate side of our business, which we believe is core to the Group's business and where we see significant growth opportunities.

Barkby Pubs

G iven the recent Government guidance of 17(th) May for reopening indoor hospitality, we will be in a strong position to benefit from restricted international travel, staycations, pent up demand for hospitality and changing consumer behavior.

Workshop Coffee

We are seeing a very encouraging pickup in wholesale revenues as venues reopen. We are planning to reopen two of our retail locations around the 17 May as lockdown restrictions are lifted. Whilst the pandemic has seen excellent growth in Workshop's online platform, the Board are optimistic that we can also return to strong growth across our retail business once restrictions are lifted fully.

Life Sciences

Cambridge Sleep Sciences Ltd ('CSS')

Disruption to sleep during the COVID-19 pandemic has been widely reported. According to The Telegraph, the British Sleep Society found 70% of British people aged 40 to 63 have reported changes to their sleep patterns during the pandemic.

The need for help to restore natural sleep patterns has never been greater and the opportunity for CSS is significant. P&S Intelligence state that the global sleeping aids market size was $78.7 billion in 2019, and it is projected to witness a CAGR of 7.1% during the period 2020 to 2030.

Since our last update, SleepHub has announced three new partnerships to enable it to capitalise on this market opportunity.

Probitas Technologies, a specialist IT distributor across EMEA, will initially be offering SleepHub to the Portuguese, Spanish and French markets. Health and wellbeing ecosystem creators, Nexus Digital Technology, will make SleepHub available as part of their health and wellbeing app. Finally, My Benefits World will be making SleepHub available to thousands of employees through its online employee benefits solution.

These partnerships follow the recent announcement of the new collaboration agreement between CSS and Parkinson's Concierge, to help address sleep issues associated with Parkinson's Disease.

We are exploring licensing opportunities for the IP of SleepHub. We have had discussions with several potential partners and see this as a significant revenue source as we develop the IP further. CSS is currently developing a second generation of SleepHub products and expects these to be available in Q3 2021. These will likely include wireless earbuds, a CSS App and further technology enhancements to the product experience.

Verso Biosense Ltd

Our female health investment, Verso Biosense, has continued to make excellent progress. Engineering breakthroughs have allowed us to progress faster than expected, resulting in major improvements in next generation chip sets, monitoring functions, electronics and garment design. We will be moving into a clinical study in Q2 2021.

Since our last update we have announced partnerships with London's Women Clinic and Homerton University Hospital. Both parties will collaborate with Verso, using its uterine monitoring device to refine the technology and biosensing platform to meet the needs of its fertility patients. Verso's platform captures critical in-vivo, biosensing data for optimisation and personalisation of IVF treatment, providing actionable insights for clinicians and patients.

Liquidity

We have managed cash tightly through all three national lockdowns and have increased cash headroom by refinancing the current GBP3.5m Tarncourt facility into a new GBP5m facility with Tarncourt, with an expiry of 30 June 2023.

Furthermore, the Group has taken a GBP450k loan secured against the freehold of the Wellingborough site from James Dickson, a significant shareholder in the Company and CEO of Workshop Coffee.

The Group currently has net cash available of c.GBP1.5m as at 31 March 2021. The Board have taken the steps of consulting with their major shareholders regarding a potential equity raise and our shareholders have confirmed their continued support should the Board wish to raise further capital.

Summary

The Group continues to deliver on its strategy to accelerate and maximise opportunities within its existing businesses and to invest in exciting businesses with the ability to disrupt. Having weathered the COVID-19 pandemic we now look forward to trading conditions improving across the most impacted parts of our business.

The diversification of the business means that the Group is in a strong position to benefit from the lifting of government lockdown restrictions. Early trading signs are positive and we expect further improvements as restrictions loosen further in the coming weeks and months.

We would like to thank all our employees, suppliers, shareholders and other stakeholders for their continued support during the period and into the future and we look forward to the next 12 months with confidence, while recognising uncertainties remain.

Charles Dickson

Chairman

30 April 2020

Enquiries:

 
The Barkby Group PLC 
Charles Dickson, Executive Chairman 
 Douglas Benzie, Chief Financial Officer 
                                           +44 (0) 20 7220 
FinnCap (Nominated Adviser and Broker)      0500 
Carl Holmes/Simon Hicks 
 Tim Redfern / Richard Chambers 
                                           +44 (0) 20 3757 
Camarco (Financial PR)                      4994 
Jennifer Renwick/Jake Thomas 
 

THE BARKBY GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

26 weeks ended 31 December 2020

 
                                                                  15 month 
                                                      26 weeks      period 
                                                         ended       ended 
                                                     31-Dec-20   02-Jul-20 
                                            Note     Unaudited     Audited 
                                                      GBP'000s    GBP'000s 
 
 Revenue                                                 7,795      12,048 
 
 Cost of sales                                         (6,765)    (11,188) 
 
 Gross profit                                            1,030         860 
 
 Administration expenses                               (2,663)     (3,538) 
 Other income                                               41         367 
 
 Loss from operations                                  (1,592)     (2,311) 
 
 Finance income                                             49         125 
 Finance expense                                         (466)       (949) 
 
 Loss before tax                                       (2,009)     (3,135) 
 
 Corporation Tax expense                                     -         (4) 
 
 Loss and total comprehensive income for 
  the period                                           (2,009)     (3,139) 
                                                    ==========  ========== 
 
 Loss for the period is attributable to: 
 Non-controlling interests                                (77)        (44) 
 Owners of the Barkby Group Plc                        (1,932)     (3,095) 
                                                    ----------  ---------- 
                                                       (2,009)     (3,139) 
                                                    ==========  ========== 
 
 Loss per share for loss attributable to             Pence per   Pence per 
  the owners of The Barkby Group Plc                   share       share 
 Basic and diluted loss per share                       (1.43)      (2.69) 
 

All of the loss of both of the periods are from continuing operations.

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

THE BARKBY GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2020

 
                                                As at        As at 
                                               31 Dec 
                                                 2020   2 Jul 2020 
                                            Unaudited      Audited 
                                  Notes       GBP'000      GBP'000 
 Non-current assets 
 Fixed assets - owned                           1,626        1,554 
 Fixed assets - leased                          3,082        2,643 
 Intangible assets                              8,614        8,355 
 Investments                                    2,542        2,042 
 Non-current receivable                           167          127 
                                           ----------  ----------- 
                                               16,031       14,721 
 Current assets 
 Inventories                                    5,932        4,226 
 Trade and other receivables                      169          466 
 Contract assets                                    -        4,898 
 Other current assets                             536          641 
 Prepayments                                      319          401 
 Cash and cash equivalents                        665          306 
                                           ----------  ----------- 
                                                7,621       10,938 
                                           ----------  ----------- 
 Total assets                                  23,652       25,659 
 Current liabilities 
 Trade and other payables                     (1,534)      (1,937) 
 Other current liabilities                    (3,343)      (1,833) 
 Current borrowings                           (6,937)      (8,999) 
 Current lease liabilities                      (592)        (491) 
 Income tax payable                              (88)        (107) 
                                           ----------  ----------- 
                                             (12,494)     (13,367) 
 Non-current liabilities 
 Non-current borrowings                       (5,041)      (4,899) 
 Provisions                                      (38)         (28) 
 Non-current lease liabilities                (2,887)      (2,349) 
                                           ----------  ----------- 
                                              (7,966)      (7,276) 
                                           ----------  ----------- 
 Total liabilities                           (20,460)     (20,643) 
 Net assets/(liabilities)                       3,192        5,016 
                                           ==========  =========== 
 Equity 
 Share capital                                  1,179        1,164 
 Share premium                                  4,493        4,323 
 Merger reserve                                 (422)        (422) 
                                           ----------  ----------- 
 Issued equity                                  5,250        5,065 
 Profit and loss reserve                      (2,058)         (49) 
                                           ----------  ----------- 
 Total equity and reserves                      3,192        5,016 
                                           ==========  =========== 
 

THE BARKBY GROUP PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

26 weeks ended 31 December 2020

 
                                                            15 month 
                                                 26 weeks     period 
                                                    ended      ended 
                                                31-Dec-20   2-Jul-20 
                                                Unaudited    Audited 
                                                 GBP'000s   GBP'000s 
 Cash flows from operating activities 
 Loss before tax                                  (2,009)    (3,135) 
 Adjustments to reconcile loss before tax 
  to net cash flows 
 Depreciation and amortisation                        410        581 
 Adjustment of deferred consideration                (35)          - 
 Net finance expense                                  417        824 
 Movement in working capital                        5,316    (5,491) 
 Net interest paid                                  (371)      (774) 
 Income tax paid                                     (19)          - 
                                               ----------  --------- 
 Net cash flow from operating activities            3,709    (7,995) 
                                               ----------  --------- 
 Cash flows from investing activities 
 Acquisition of subsidiaries and businesses          (55)      (549) 
 Purchase of investments                            (500)    (1,950) 
 Purchase of property, plant and equipment          (199)      (194) 
 Purchase of intangible assets                      (230)      (287) 
                                               ----------  --------- 
 Net cash used in investing activities              (984)    (2,980) 
 Cash flows from financing activities 
 Proceeds from issue of shares                        125      5,075 
 Proceeds from borrowings                          11,219      8,985 
 Share issue transactions cost                          -      (531) 
 Payment to shareholders                                -      (375) 
 Repayment of borrowings                         (13,139)    (2,981) 
 Repayment of lease liabilities                     (186)      (393) 
                                               ----------  --------- 
 Net cash raised in financing activities          (1,981)      9,780 
 Net increase/(decrease) in cash and cash 
  equivalents                                         744    (1,195) 
                                               ----------  --------- 
 Cash and cash equivalents at beginning of 
  period                                          (1,174)         21 
                                               ----------  --------- 
 Cash and cash equivalents at end of period         (430)    (1,174) 
                                               ==========  ========= 
 
 

All cashflows are from continuing operations.

THE BARKBY GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

26 weeks ended 31 December 2020

 
                                     Share      Share     Merger    Retained   Non-controlling     Total 
                                   capital    premium    reserve    earnings          interest 
                                   GBP'000    GBP'000    GBP'000     GBP'000           GBP'000   GBP'000 
 At 2 July 2020                      1,164      4,323      (422)        (49)                 -     5,016 
 
 Loss after income 
  tax and total comprehensive 
  income for the 
  period                                 -          -          -     (1,932)              (77)   (2,009) 
 Transfer of loss 
  attributable to 
  non-controlling 
  interest                               -          -          -        (77)                77         - 
                                 ---------  ---------  ---------  ----------  ----------------  -------- 
                                         -          -          -     (2,009)                 -   (2,009) 
 
 Shares issued to 
  partially settle 
  deferred consideration 
  (Turf to Table 
  acquisition)(a)                        2         58          -           -                 -        60 
 
 Transactions with 
  shareholders in 
  their capacity 
  as shareholders 
 Exercise of warrants 
  (b)                                   13        112          -           -                 -       125 
 
 At 31 Dec 2020                      1,179      4,493      (422)     (2,058)                 -     3,192 
                                 =========  =========  =========  ==========  ================  ======== 
 
 

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Notes:

(a) As part of the settlement of the deferred consideration in relation to the Turf to Table acquisition the Group issued 260,869 ordinary shares on the 1 October 2020 to the Turf to Table vendors. These ordinary shares were valued at GBP60,000 based on a 23p per share price. A further GBP55,000 was settled in cash.

(b) On 24 December 2020 the Group allotted 1,452,347 shares to Giles Clarke following the exercise of his warrants at a total price of GBP125,000 cash.

THE BARKBY GROUP PLC

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

26 weeks ended 31 December 2020

   1.    GENERAL 

These unaudited consolidated interim financial statements are for the 26 weeks ended 31 December 2020 (3 July 2020 to 31 December 2020). They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the 15 month period ended 2 July 2020 (1 April 2019 to 2 July 2020), which were prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

The statutory accounts for the 15 month period ended 2 July 2020 have been filed with the Registrar of Companies. Those accounts have received an unqualified audit report and did not contain statements or matters to which the auditors drew attention under the Act.

The Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, these interim financial statements have been prepared on a going concern basis as the Directors are of the opinion that the Company has sufficient funds to meet their ongoing working capital and committed capital expenditure requirements. A detailed disclosure outlining going concern considerations was provided in the statutory accounts for the 15 month period ended 2 July 2020. The Directors performed their going concern review as at 31 March 2021 and have concluded that no matters have arisen since that date to change the conclusion of the review.

The interim financial information is unaudited, no dividend has been declared or paid in this interim period.

   2.    ACCOUNTING POLICIES 

The principal accounting policies and methods of computation have remained unchanged from those used in the preparation of the financial statements for the 15 month period ended 2 July 2020 and are expected to be used for the financial statements for the 52 week period ending 1 July 2021.

   3.    LOSS PER SHARE 
 
                                                             15 month 
                                               26 weeks        period 
                                                  ended         ended 
                                              31-Dec-20      2-Jul-20 
                                              Unaudited       Audited 
                                                 Number        Number 
                                              of shares     of shares 
 Weighted average number of ordinary 
  shares in issue                           135,422,389   114,896,986 
 Dilution for warrants outstanding            3,104,138     1,221,341 
                                           ------------  ------------ 
 Diluted weighted average number of 
  shares                                    138,526,527   116,118,327 
 
                                               GBP'000s      GBP'000s 
 Loss after income tax                          (2,009)       (3,139) 
 Non-controlling interest(                          131            44 
 Loss after income tax attributable 
  to the owners of The Barkby Group Plc         (1,878)       (3,095) 
                                           ============  ============ 
 
                                                  pence         pence 
 Basic and diluted loss per share                (1.39)        (2.69) 
 
 
   4.           PROPERTY, PLANT AND EQUIPMENT 
 
 Property, plant               Land       Leasehold    Plant and     Computer        Fixtures 
  and equipment       and buildings    improvements    equipment    equipment    and fittings      Total 
 Net book value 
                           GBP'000s        GBP'000s     GBP'000s     GBP'000s        GBP'000s   GBP'000s 
 At 3 July 2020                 669             344          122          115             304      1,554 
 Additions                        -              10          158           30              18        216 
 Depreciation 
  charge                        (1)            (41)         (39)         (18)            (45)      (144) 
------------------  ---------------  --------------  -----------  -----------  --------------  --------- 
 At 31 December 
  2020                          668             313          241          127             277      1,626 
 
 

Land and buildings includes GBP300,000 of freehold land. Freehold land is not depreciated.

   5.           INTANGIBLE ASSETS 
 
                                           Product 
                                        design and            Patents     Computer 
 Intangible assets        Goodwill     development     and trademarks     software       Total 
 Net book value 
                          GBP'000s        GBP'000s           GBP'000s     GBP'000s    GBP'000s 
 At 3 July 2020              8,037              69                249            -       8,355 
 Additions                       -             210                 11           77         298 
 Depreciation charge             -            (14)               (20)          (5)        (39) 
----------------------  ----------  --------------  -----------------  -----------  ---------- 
 At 31 December 
  2020                       8,037             265                240           72       8,614 
 
 
   6.           RIGHT-OF-USE ASSETS 
 
                                                     Service 
 Right-of-use assets     Buildings       Pubs    concessions      Total 
 Net book value 
                          GBP'000s   GBP'000s       GBP'000s   GBP'000s 
 At 3 July 2020                325      2,301             17      2,643 
 Additions and 
  renewals                      64        679              -        743 
 Covid - 19 relief             (8)       (65)            (4)       (77) 
 Depreciation charge          (89)      (130)            (8)      (227) 
----------------------  ----------  ---------  -------------  --------- 
 At 31 December 
  2020                         292      2,785              5      3,082 
 
 

In September 2020, the Group entered into a new 6 year lease for The Harcourt Arms, a village pub with 125 covers and 10 rooms to let. The resultant right-of-use asset was recognised at GBP679,000, with a lease liability of GBP669,000 and a dilapidations provision of GBP10,000 also being recognised.

   7.           CASH AND CASH EQUIVALENTS 
 
                                                 31-Dec-20   2-Jul-20 
                                                 Unaudited    Audited 
                                                  GBP'000s   GBP'000s 
 Cash at bank                                          647        236 
 Cash in transit                                        13         69 
 Petty cash                                              5          1 
                                                ----------  --------- 
                                                       665        306 
 Reconciliation to cash and cash equivalents 
  at the end of the financial period 
 The above figures are reconciled to 
  cash and cash equivalents at the end 
  of the financial year as shown in the 
  statement of cash flows as follows: 
 Balances as above                                     665        306 
 Bank overdraft                                    (1,095)    (1,480) 
 Balance of cash and cash equivalents 
  per statement of cash flows                        (430)    (1,174) 
                                                ==========  ========= 
 
 
   8.           LEASE LIABILITIES 
 
                               Balance      New leases   Covid-19                 Interest     Balance 
 Lease liabilities                  at    and renewals     relief   Re-payments     charge          at 
                              2-Jul-20                                                       31-Dec-20 
 
                              GBP'000s        GBP'000s   GBP'000s      GBP'000s   GBP'000s    GBP'000s 
 Building leases                   347              64        (8)          (84)         11         330 
 Pub leases                      2,460             669       (65)          (74)         68       3,058 
 Kitchen equipment 
  leases                             9               -          -           (8)          -           1 
 Service concession 
  leases                            24               -        (4)          (11)          5          14 
 Other leases                        -              85          -           (9)          -          76 
                             ---------  --------------  ---------  ------------  ---------  ---------- 
 Total lease liabilities         2,840             818       (77)         (186)         84       3,479 
                             =========  ==============  =========  ============  =========  ========== 
 Reported as 
 Current lease liabilities         491                                                             592 
 Non-current lease 
  liabilities                    2,349                                                           2,887 
                             ---------                                                      ---------- 
 Total lease liabilities         2,840                                                           3,479 
                             =========                                                      ========== 
 

As described in note 6. Right-of-use assets, the Group entered into a new lease for The Harcourt Arms in September 2020. The lease liability recognised at commencement of the lease was GBP669,000.

The Group also renewed one of its building leases in the period ended 31 December 2020 resulting in a renewed lease liability of GBP64,000.

   9.           BORROWINGS 
 
                                 Balance         Proceeds                  Balance 
 Borrowings                           at    of borrowings   Repayments          at 
                                2-Jul-20                                 31-Dec-20 
 
                                GBP'000s         GBP'000s     GBP'000s    GBP'000s 
 Bank overdrafts                   1,480            1,095      (1,480)       1,095 
 Bank loans                          332            1,000         (17)       1,315 
 Vehicle finance                   3,378            7,532      (7,113)       3,796 
 Other loans                       6,385                -      (4,289)       2,097 
 Loans from related parties        2,323            1,592        (240)       3,675 
                               ---------  ---------------  -----------  ---------- 
 Total borrowings                 13,898           11,219     (13,139)      11,978 
                               =========  ===============  ===========  ========== 
 Reported as 
 Current liabilities               8,854                                     6,937 
 Non-current liabilities           5,044                                     5,041 
                               ---------                                ---------- 
 Total borrowings                 13,898                                    11,978 
                               =========                                ========== 
 

In July 2020, the Group borrowed GBP1m from HSBC under the UK Government's Coronavirus Business Interruption Loan Scheme. The loan provided extra liquidity to support, in particular, the Group's Hospitality and Consumer division after a period of severe disruption due to Covid-19.

The completion in August 2020 of the Group's Hastings development and subsequent collection of the resulting trade receivables enabled other loans totalling GBP4.2m at 2 July 2020 to be repaid in the period ended 31 December 2020.

The Group has access to a term loan facility with Tarncourt Investments LLP, a related party. During the period ended 31 December 2020, the Group drew down GBP1.6m from the facility. The GBP3.5m facility was due to expire in July 2021, but has been refinanced into a new GBP5 million facility which now expires on 30 June 2023. The balance owed on this facility is presented as a non-current liability at both 2 July 2020 and 31 December 2020.

   10.          SHARE CAPITAL 

Issued and fully paid:

 
                                                      31-Dec-20              2-Jul-20       31-Dec-20         2-Jul-20 
                                                  No. of shares         No. of shares        GBP'000s         GBP'000s 
 
       Ordinary shares of 
        GBP0.00860675675675676 
        each                                        136,948,282           135,235,066           1,179            1,164 
                                             ==================    ==================   =============   ============== 
 

On 1 October 2020 the Group issued and allotted 260,869 ordinary shares in partial settlement of the deferred consideration relating to the Turf to Table acquisition. For the purposes of this settlement the shares were valued at 23p each giving a total of GBP60,000 of equity settled deferred consideration. In addition to the shares, the Group paid a further GBP55,000 cash. The total value of this settlement of GBP115,000 compared to the existing balance payable of GBP150,000 resulting in a credit of GBP35,000 being taken to profit of loss in the period ended 31 December 2020.

On 24 December 2020 the Group issued and allotted 1,452,347 ordinary shares following the exercise of warrants by Giles Clarke. The Group received GBP125,000 cash from the exercise of the warrants.

   11.          COPIES OF INTERIM REPORT 

Copies of the interim report are available to the public from the Company at 115B Innovation Drive, Milton Park, Abingdon, Oxfordshire, OX14 4RZ and are available on the website at www.barkbygroup.com.

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END

IR UKOURASUSUUR

(END) Dow Jones Newswires

April 30, 2021 02:00 ET (06:00 GMT)

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