NWTC posts £13.9m FY loss following CVA

The New World Trading Company has fallen to a £13.9m full-year loss after restructuring costs and interest expenses linked to its capital structure, a year after a CVA was approved by creditors.

Despite the loss, the hospitality operator reported higher underlying earnings in the 52 weeks to 30 March 2025, as underlying EBITDA rose 18% to £4m, up from £3.4m a year earlier.

It comes as it delivered positive like-for-like sales and improved margins despite what it described as difficult trading conditions across the sector.

The company, which operates the Botanist bar and restaurant brand, increased its gross profit margin to 77.5%, from 76.3% in the previous financial year. Like-for-like site-level EBITDA also saw a rise of 1% to £8.7m.

During the year, the wider group undertook a strategic review following changes to its senior leadership team. That process resulted in the proposal of a company voluntary arrangement (CVA) for New World Trading Company (UK) Limited, which was approved by creditors on 21 October 2024.

The CVA led to the closure of seven non-core sites, either immediately or in January 2025, as the business moved to concentrate on the Botanist brand. Directors said the restructuring was intended to improve long-term profitability and reduce exposure to underperforming locations.

After the CVA, the company carried out a brand refresh of the Botanist, including new menus, changes to its digital platforms and the launch of a new website. It reported like-for-like sales growth of 4% in the seven accounting periods to October 2025.

Labour costs at site level increased slightly to 35.6% of revenue, from 35.2% a year earlier, reflecting higher employment costs. The company said the impact had been partly offset by efficiency measures.

Despite the improvement in underlying performance, the group made a statutory loss of £13.9m, compared with a £12.8m loss in 2024. The company attributed the result to interest costs linked to the group’s capital structure and exceptional costs associated with the CVA.

Since the end of the financial year, New World Trading Company has opened a new Botanist site in Bournemouth. The company said the venue had traded ahead of expectations, with sales more than £1m above budget after six months of operation.

According to directors, the business was now better positioned following the restructuring, with a reduced estate and a focus on its core brand as it continues to trade in a challenging hospitality market.