Northern Monk’s sales jumped 18% last year as it sought to kickstart ambitions to become Europe’s biggest craft brewery by 2035.
The company’s revenue hit £16.3m in the year to 31 August, up from £13.9m the year before, boosted by strong growth in supermarkets.
A new pub in Leeds added over £750k with more openings to come in London, York, and Edinburgh this year.
However, inflation and a rise in staff numbers meant pre-tax losses narrowed only slightly to £2m. The company said that, as is common with growth-stage businesses, it is not yet profitable and is funded by private equity.
“The key backer and majority shareholder has repeatedly funded the business over the last five years and has outlined their intention to continue doing so,” its accounts read.
“This backing was demonstrated during the period with the conversion of £2.8m of loan notes into equity, and the conversion of a further £1.5m of loan notes into equity post-year-end to strengthen the balance sheet.”
The company’s cash balance stood at £55k at the end of the year, up from £33k a year earlier.
Northern Monk’s recent growth has come amid intense pressure for independent brewers with rising costs, reduced drinking, and cheaper rivals all threatening their longevity. Its sales have doubled since 2020 and it previously forecast annual revenue will hit £20m next year.
It expects this “significant” growth to continue across both supermarkets and the new pub venues, but noted that should it ease off, the company will “require further funding which has not yet been committed”.
The brewer recently closed a £2m crowdfunding campaign to help it open a pub in London and upgrade the brewery’s original production site and taproom in Leeds.
The round exceeded its initial £1m target which valued the company at £40m. It was the company’s second crowdfunding round having raised £1.5m at a £10m valuation in 2018.
Speaking to The Grocer last month, co-founder Russell Bisset said much of Northern Monk’s success was due to its ability to resonate across the north of the UK and evoke a sense of community and pride among beer drinkers.
“There’s something about beer and its sense of place,” he said. “Even from a macro lens you’ve got Guinness and Dublin, Estrella and Barcelona, Foster’s and Melbourne. Within craft, I don’t think many people play that role. We’ve got a story that resonates with people.”
In March last year, it spent £500k on boosting its brewing capacity by a fifth with new equipment such as fermentation tanks and the reconfiguration of its main brewing site. The move was funded using a combination of asset financing and existing cash reserves.
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