Black Sheep coffee made losses of £5.3m in 2018, an increase from £2.8m in 2017, as the group invests in scaling up and adding new sites.

Turnover for the year was £6.85m, while like for like sales are “continuing to grow”, according to accounts filed for Black Sheep’s parent company Conilon.

Gross profit was £1.37m.

The operator said the losses were anticipated, as the business adds and matures new stores and invests in its support office as it scales up.

At the year end group had net assets of £5.3m, and 25 sites

Writing in a strategic report, co-CEO Eirik Holth said: “The group remains focused on growing the business through new greenfield site openings, M&A and development of global franchise business.”

He added: “These losses are anticipated at this stage of the business timeline as the group adds new stores to its young estate which are ramping up to a mature trading profile as well as investment in its support office to assist with scaling the business over the next 12-18 months.”

As reported by MCA earlier this week, Jacob Schram, Bill Schultz and Serge-Stanislas Stec have joined the board of directors.

Shultz is president of Coca-Cola Refreshments Canada, while Schram is group president of Circle K Europe, the Canadian convenience store chain.

Both were announced as having invested in the coffee shop retailer as part of a £13m funding round, which also included Spotify backer Tellef Thorleifsson and former McKinsey chairman Tore Myrholt.