Losses at Harris & Hoole have deepened after the continuing rapid expansion of the business with 22 shops opened with a total of 45 now operating. Given the changed focus at Tesco, and despite the improving operational performance at Harris + Hoole, Tesco’s forward commitment to the business and its further expansion will no doubt be under ongoing review.
The rapid pace of expansion led to pre-tax losses of £25.6m compared to £12.8m the previous year.
The company’s accounts, recently filed at Companies House, reveal that the business will require £6m of further funding from Tesco up to the end of 2017 in order to meet its financial obligations, and Tesco will apparently continue to provide up to £7.5 million support over the next year, having already loaned the business £48 million.
Solid foundations
A spokesperson for Harris+Hoole said: “These results cover the period ending 1 March this year and clearly reflect a challenging trading period for us – but since these results were filed we’ve seen encouraging trends in our like-for-like trading. We’ve also put in place a series of measures to stabilise and consolidate the operating model of the business. As a result, we have solid foundations to support our long term ambitions to become the high street leader in quality coffee.”