BOXPARK, the UK’s award-winning dining, retail and leisure concept, has published its latest accounts which reveal the Group broke even in the year to April 2021, despite all sites being closed for three national lockdowns.
In the reporting period*, which was significantly impacted by Covid-19 closures and related trading restrictions, BOXPARK was able to remain at a broadly break-even level with £0.1m pre-exceptional cash operating profits in the year to 2021**, compared with £2.5m in the year to the end of April 2020.
Whilst the Group’s revenue decreased by 55%, BOXPARK was able to break even with only 22 weeks of trading, facing a series of closures for 58% of the year. During the periods of opening, the Group traded strongly in August 2020, supported by the Government’s ‘Eat Out To Help Out’ initiative.
The results demonstrate that BOXPARK adapted swiftly to the significant challenges created by the impact of Covid-19 and is a testament to the Group’s highly flexible business model and cost base.
Since reopening, BOXPARK has maintained a number of measures that were implemented in response to Covid-19 Government guidelines, such as ordering food and drink via mobile, and upgrading its Black Card into a loyalty scheme. Whilst these initiatives had significant cost implications, BOXPARK has emerged from the pandemic in a stronger operational shape than prior to the crisis with a strong rebound of trading and like-for-like sales.
In addition, BOXPARK maintained a strong financial position throughout the pandemic without needing to take up any of the Government guaranteed debt facilities made available to businesses in distress. By utilising the Government Coronavirus Job Retention Scheme, BOXPARK was able to retain most of its staff and post-Covid, went on to expand the team.
During this period, BOXPARK also committed to giving its tenants rent relief and exemption from service charges unless they chose to remain open for food delivery. The Group’s food traders are benefiting from strong footfall recovery at all sites, as well as the rapid growth of demand for food deliveries, with most leveraging multiple delivery platforms and having both a public-facing brand for on-site footfall, as well as a dark kitchen for strong delivery traffic.
Founder & CEO of BOXPARK, Roger Wade comments on the Group’s latest accounts: “The entire hospitality industry saw a catastrophic collapse in revenue in 2020-2021 during the enforced lockdowns, so overall, we are pleased with these results and have since made a rapid recovery, bouncing back from the crisis stronger than ever.
“Thanks to our team, our traders and our loyal customers, we have survived one of the harshest economic conditions in history and have also just reached a very exciting milestone as a business with BOXPARK’s 10-year anniversary. We have a bright future ahead with multiple sites being secured across the UK and as a forward-thinking innovator in the hospitality and leisure sectors, we will ensure all current and new developments will have Covid-proof operations.”