Gail’s Bakery has reported group turnover of £62m for the five months ended 28 February 2022, driven by seven new openings during the period alongside a further 26 openings forecast in the subsequent financial year to February 2023.
In its latest accounts filed at Companies House, the Bain Capital-backed business also reported a loss before tax of £9.92m and adjusted group EBITDA of £3.82m. Turnover for the year to February 2022 was £100m, with a profit before tax of £19.5m.
Turnover increased by 76% during the year – compared to £57m in the year to February 2021. This was attributed both to pandemic-related closures as well as new openings.
While loss in the period was attributed to acquisition, the group has a £63.7m loan facility with Rabobank, up for renewal by September 2028. This was further extended to £109m in June 2022.
“The directors have prepared cashflow forecasts for the period to 28 February 2024…including the severe but plausible downside scenario that could arise if revenues were to reduce compared with management’s current expectations due to cline in consumer spending as a result of the worsening economic climate.
“This scenario includes a reduction in revenue of 20% in Gail’s compared to the base case forecast…after the year end, there has been an increase in the cost of ingredients including flour, butter, and many others.
“This has been fully considered in our latest projections and odes not cause any going concern issues. Under this severe downside scenario, the group will remain overall cash generative.
Holding company Grain Topco also reported growth in its retail channel, both with supermarket chains and delivery operators.
“While cost pressures remain an ongoing focus, top line growth in both businesses remains the primary engine of the group’s profit and EBITDA performance.”
Earlier this month, Gail’s announced it will be making its Northwest debut in Wilmslow, Cheshire, with further openings in the region to be announced next year.
