LONDON (ShareCast) - (Sharecast News) - Hospitality operator Barkby updated the market on the review of its pubs business on Friday, as it focussed on strategies to restore profitability within the upcoming financial year.
The AIM-traded firm said that as part of the review, it had successfully negotiated cash-neutral early lease surrenders for two of its pubs - the Harcourt Arms in Stanton Harcourt, and the Ebrington Arms in Ebrington.

It said that would enable it to reduce costs and streamline its operations.

In addition, Barkby said it had received an offer for the Plough at Kelmscott, which it had accepted in principle.

The sale was currently progressing through the conveyancing process.

Should the sale of the Plough at Kelmscott be successfully concluded, Barkby's board expected that the company's remaining estate would consist of six pubs with rooms in the Cotswolds, Oxfordshire, and West Sussex.

"The hospitality sector faces a significant combination of challenges from cost inflation, the frequency and value of customer spending and securing reliable, experienced labour," said executive chairman Charles Dickson.

"Our estate has delivered robust trading by offering excellent service, consistently high-quality food and attractive accommodation in areas of outstanding natural beauty."

At 0931 BST, shares in Barkby Group were down 11.16% at 4.22p.

Reporting by Josh White for Sharecast.com.

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