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British Honey Co PLC on Monday reported an increased annual loss as exceptional costs as well as administrative and sales costs surged.
For 2021, the Buckinghamshire-based spirits and honey producer reported a pretax loss of £12.1 million, vastly widened from £1.2 million in 2020. Revenue jumped to £8.0 million from £1.5 million. Cost of sales ballooned to £4.7 million from £630,573.
More importantly, exceptional expenses increased to £8.9 million from £245,048.
‘These exceptional losses represent the realignment of the management structure and the revised group strategy and upon which a future business can be built,’ British Honey explained.
Administrative expenses widened to £5.9 million from £1.7 million.
‘The directors have been handicapped by the lack of normal overdraft facilities to fund the working capital of the business, in which there can be significant spikes of cash flow required in the business,’ British Honey added. ‘The company’s bank has been consulted and should be able to produce some leasing lines of credit and other financing arrangements after they have reviewed these audited accounts along with the relevant assets. These negotiations have not been agreed formally. The company is also looking at other forms of debt financing, including invoice factoring.’
On Wednesday last week, British Honey said it had terminated its formal sale process, explaining that it was unlikely to receive an offer it would deem attractive. It said it had secured a £750,000 loan for its short-term working capital requirements.
British Honey shares are currently suspended from trading on AQSE in London.
By Tom Budszus, Alliance News reporter
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