Artfarm, the hospitality group behind London’s iconic Groucho Club, has fallen further into the red in its latest financial year despite a surge in sales.
The Somerset-based company, owned by Swiss art gallery investors Iwan and Manuela Wirth, disclosed a turnover of £42.2m for 2023, a notable increase from £28.6m in 2022.
However, accounts recently filed with Companies House also show that the firm’s pre-tax losses expanded from £7.5m to £11.7m during the same timeframe, as reported by City AM.
In 2022, the group expanded its portfolio by acquiring the Groucho Club for £40m and also operates the Mount Street restaurant, the Fife Arms in Scotland, and Durslade Farm Shop in Somerset.
The latest results follow the news that Artfarm’s CEO, Ewan Venters, is set to depart in January or earlier if a successor is appointed, the company reflected on its performance. Venters, who previously led Fortnum & Mason, joined Artfarm in 2021.
In a statement approved by the board, it was noted: “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.”
It concluded with an explanation of the current financial standing: “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.”
Regarding the Groucho Club, Artfarm stated: “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.”