A jump in sales at the hospitality group behind London’s Groucho Club failed to stop its sinking further into the red during its latest financial year.
Somerset-based Artfarm, which is owned by the Swiss art gallery investors Iwan and Manuela Wirth, has reported a turnover of £42.2m for 2023, up from the £28.6m it achieved in 2022.
However, newly-filed accounts with Companies House also revealed that the firm’s pre-tax loss widened from £7.5m to £11.7m over the same period.
The group bought the Groucho Club for £40m in 2022 while its portfolio also includes Mount Street restaurant, the Fife Arms in Scotland and Durslade Farm Shop in Somerset.
The results come after it was announced that Artfarm’s chief executive, Ewan Venters, is to step down in January, or sooner if a suitable replacement is found.
Venters is a former boss of Fortnum & Mason and joined Artfarm in 2021.
Groucho Club owner explains lack of profit
A statement signed off by the board said: “2023 was a successful year in the evolution of Artfarm, with remarkable pace of change and growth in sales year on year and the opening of two new outlets.
“2023 was also a year of foundational work in preparation for further growth and openings in 2024, 2025 and beyond.
“Artfarm’s current profitability is limited by the significant growth centred around our ambition to redefine what culturally-led development can achieve.
“By this nature, driven by ambitious expansion plans, Artfarm is currently resource and capital intensive, both of which act as a significant brake on profitability.”
On the Groucho Club, Artfarm added: “The club is a natural fit for Artfarm and shares a common long-term vision or growth.
“2023 was a period of change for the club as we embarked on an ambitious upgrade path, starting with all key technology systems and the main bar refurbishment.
“Further exciting upgrades are planned over the coming years.”