The 30-store Northern Irish café chain narrowed its losses by 32% in the year ended 30 June 2024 while revenues reached a record £21.5m ($27m)
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The interior of a Bob & Berts outlet in Kendal, Cumbria | Photo credit: Bob & Berts
Bob & Berts has forecast a return to profit in 2025 after posting strong sales growth in the 12 months ended 30 June 2024.
The Northern Ireland-based café chain achieved 10% year-on-year revenue growth to reach £21.5m ($27m) during the period, while pre-tax losses narrowed from £580,320 ($729,439) to £394,932 ($496,413).
Bob & Berts, backed by UK investment company BGF, last posted an annual profit in June 2022, when it earned £1.1m ($1.4m). However, rising costs and outlet expansion across the North of England and Scotland have hit profitability over the last two years.
Founded in Portstewart in 2013, Bob & Berts opened four net new stores during its financial year and now operates 30 UK outlets – 17 in Northern Ireland, seven in England and six in Scotland.
“The year ended 30 June 2024 was a record year of sales for Bob & Berts. The group continued its expansion across the UK and Northern Ireland with the opening of an additional four stores. Sales and transactions for FY24 have remained strong for the group,” said David Ferguson, Director, Bob & Berts.
While Bob & Berts expects high inflation and energy costs to stabilise over the next 12 months, Ferguson said the chain is implementing several design and technology initiatives to generate greater in-store efficiencies to offset rising labour costs. These include integrating tills with kitchen order management systems and a new electronic point of sale (EPoS) system to improve site reporting.
“Management believe that as these projects are embedded into the organisation and sales remain strong, the group will return to profit in FY25,” he added.
In February 2024, Bob & Berts revised its long-term growth target from 70 to 100 stores.