Darwin and Wallace FY losses widen to £11.3m under new ownership

Bar-restaurant operator Darwin and Wallace has seen its pre-tax losses widen, from £1.9m to £11.3m in the 70-week period to 30 September 2024, after restructuring its estate and operations under new ownership. 

According to its latest filing at Companies House, the results were affected by an impairment charge of £7.3m, exceptional costs of £1.4m and a loss on disposals of £1.1m. 

The impairment charges included £3.5m relating to the closure of sites at Ealing and Battersea Power Station, which were surrendered after the reporting period, and a further £3.8m provision against other sites. 

During the period, the company sold or reassigned leases at Pimlico, Battersea Rise, Ealing and Battersea Power Station as it reviewed its estate against rising costs and a trial of smaller formats. 

Darwin and Wallace said it expects to benefit from a release of £2.6m in lease liabilities in the current financial year as a result of these disposals. 

Despite its losses, the company’s revenues for the period rose to £20.7m from £17.8m, with gross profit increasing to £8.3m from £6.9m. 

The group, which currently operates seven sites, also saw its EBITDA rise to £2.2m, up from £1.5m. 

In April 2024, the London-based company was acquired by Portobello Starboard, which operates “high quality” pubs and small hotels. 

Darwin and Wallace cited in its filing at Companies House higher wage costs from the increase in the national minimum wage and national insurance changes as ongoing pressures, but said it was mitigating these through menu pricing and scheduling efficiencies. 

The changes implemented to menus, pricing and the overall offer under the new ownership are “slowly beginning to see the benefits”.

Darwin and Wallace maintains that its brand continues to be “an attractive offer in the long run” due to its well-located sites and food and drink offerings.