The neighbourhood-style group reported sales of £20.7m in its latest financial results published to Companies House, which cover an extended 70-week period between 29 May 2023 and 30 September 2024.
This compares to sales of £17.8m reported for the year ended 28 May 2023 and reflects 16% revenue growth on those figures.
During the period the group offloaded its locations in Battersea Rise and Pimlico, bringing its estate from nine sites to seven. A further two sites in Ealing and Batter Power Station, respectively, have been surrendered post year-end.
The group reported a pre-tax loss for the 70-week period of £11.3m, compared to a loss of £1.9m in its previous results.
This included an impairment charge of £7.3m, which includes £3.5m for the disposal of the sites post year-end, exceptional charges of £1.4m, and a loss on disposal of £1.1m.
More encouragingly for the group, gross profit over the period rose to £8.3m from £6.9m, while EBITDA went from £1.5m to £2.2m.
The group noted the impact of labour cost increases and cost inflation impacting margins, but said ‘significant changes’ to the menu, pricing and offer across its sites since its acquisition by Portobello Pub Company are ‘slowly paying off’.
It is also benefitting from a reduced central team that has made it ‘more agile in decision making’.
Looking ahead, Darwin & Wallace said the increase in the national minimum wage, and national insurance changes would be mitigated through reviewing menu prices and scheduling efficiencies.
It added that it ‘expects to see further improvements this year from the combined purchasing efficiencies of the group’.
Writing in the group’s results, Mayuri Vachhani, CFO at Portobello Pub Company and Darwin & Wallace, said: “Along with the well-located sites and food and drink offerings, the brand continues to be an attractive offer in the long run.”