Losses have ballooned at Daylesford Organic, prompting owner Carole Bamford to pledge to prop up the luxury farm and wellness business for the “foreseeable future” amid mounting debts.
The promise of further “financial support” from other companies within the Bamford Group is not uncommon for private businesses. However, it’s telling of the farm grocer’s continued struggles to return a profit over recent years, bar a short-lived boon during the coronavirus pandemic, and which was owed nearly £3m by its supply base during the 2024 financial year.
Revenues grew 10.4% to £55.5m (from £50.2m) thanks to “continued strength” of sales of groceries – which include luxury bone broths, organic pasta and sourdough starters – homewares as well as its cafés and cookery school. The company also enjoyed growth in its wholesale division, which supplies the likes of Planet Organic and Ocado, and its e-commerce site, which includes its hamper service.
However, pre-tax losses rose to £4.8m (up from £3.6m) during the 52 weeks to 30 March 2024, largely due to a series of one-off charges.
The business wrote off more than £1m in slow-moving or obsolete stock following a restructure of its warehouse capacity. A further cost of £308,000 came through a separate restructure of operating teams at its Cotswolds farm site. The opening of a new Heritage House events space at the site added a further £555,000 in total in pre-opening and fixed costs.
It was Daylesford’s mounting debt that led auditors to note that further financial support would be required from Bamford for the business to continue in “operational existence” for the foreseeable future. She committed to provide this.
Overall, the business owes £38.9m to businesses within the wider Bamford Group, which includes clothing, spa treatments and wellness products.
The overall amount owed by Daylesford’s suppliers fell during the year (from £3.4m in 2023). However, it was still owed £2.9m.
The Grocer has contacted Daylesford for further comment.
Daylesford was founded by Bamford – the wife of JCB heir Anthony Bamford – in 1975. It has has four London stores, as well as a flagship farm shop and spa resort in the Cotswolds.
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