Tue, 21 Mar 2023 | ADMINISTRATION
The British Honey Company (BHC), an Oxfordshire-based producer of premium British honey products, has filed notice of intention to appoint administrators. The company, which traded publicly on the Aquis exchange prior to suspending its shares, is set to appoint FRP Advisory after failing to secure long-term funding.
The company was founded in 2014 as a producer of British honey, but expanded into craft spirits, including honey infused gin. The firm now employs 80 people at a factory and warehouse in Buckinghamshire and produces brands including Two Birds and Keepr’s.
In the year to December 31 2021, the company reported revenue of £7.9 million, up from £1.5 million in the preceding nine-month period, while its gross profit increased from £916,493 to £3.2 million. Despite this, the company’s post-tax losses widened from £1.2 million to £11.8 million, with the directors’ report citing the “realignment of the management structure and the revised group strategy”, after the company underwent significant restructuring during 2021.
In October 2022, the firm announced a review to explore its strategic and financing options, including a potential sale. It subsequently secured a £750,000 loan in December to support its near-term working capital requirements while the board explored “alternative funding opportunities […] to fund the expansion and development of the business.”
However, despite the board having recognised at the time that additional funding would need to be secured in early 2023, a statement from the company said that attempts to identify funding have “proved extremely challenging, with no offer of funding support being forthcoming to date."
The statement continued: "Significant costs savings have been made in the business in order to conserve cash. Notwithstanding these cost savings, BHC will require further funding by end of March 2023, based on current management forecasts.”
“Regrettably, the board has concluded that it is required to take the necessary steps to preserve value for creditors. The board has therefore resolved to file notice of its intention to appoint administrators, with a view to appointing partners of FRP Advisory Trading Limited as administrators of BHC."
Despite this, Sky News has reported that the level of interest generated when a formal sale option was under review last year has raised hopes that the business can still be sold as a going concern.
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