The Inn Collection has secured £2m in additional funding from its private equity backer Alchemy Partners.

According to accounts just filed for the year to 31 December 2019, Alchemy agreed the further £2m on 25 January 2021, which comes on top of £21.2m in funding that has already been provided to the group since the year end in order to support its acquisition strategy. The £2m will go towards supporting working capital.

The group’s directors have said its current strategy remains on course for maximising investor value, with The Inn Collection intending to add a further three to five sites a year.

The group expanded its portfolio in 2020, acquiring the Black Swan Inn at Helmsley in January, North Yorkshire, and the Swan Inn at Grasmere in March, taking it to 11 properties.

The Inn Collection Group was sold to a NewCo backed by Alchemy Partners in June 2018, in a deal thought to value the company at approximately £20m.

In the 12 months since the acquisition the group achieved turnover of £13.6m (2008: £6.2m), gross profit of £11m and group EBITDA of £1m (2018: £0.9m). Net losses after tax were £5m, compared with £1.8m in 2018.

The group said that it expected to achieve further growth in sales and EBITDA from its core established sites, and further growth in overall profit contribution from the opening and development of new and refurbished sites.

“An encouragingly strong pipeline of further acquisition opportunities have been developed gradually at the time of issuing the financial statements, all at different stages of progress through to near completion,” said the group.

The accounts stated that based on both its base case forecast, and severe, but plausible, downside forecast, the group would require significant additional financial support from its principal shareholder in order to provide both working capital funding and support further acquisitions.