Newly published accounts for the company have revealed that pre-tax losses soared from £3.3m in 2022 to £6.6m in 2023. 

The loss comes despite an increase in turnover for the group. Revenue rose by 12% to £17.3m in 2023, from £15.4m in 2022, the Press and Journal reports. 

Despite the pre-tax loss, Jonathon Cornaby, chief financial officer said 2023 was a successful year as the group achieved “remarkable growth” in sales year-on-year.

He said: “2023 was also a year of foundational work in preparation for further growth and openings in 2024, 2025 and beyond, which means that Artfarm’s profitability is necessarily limited and will be for the foreseeable future.”

Mr Cornaby also highlighted the rise in bookings at the Fife Arms. Regarding its EBITDA (earnings before interest, taxes, depreciation and amortization), he added: “The Fife Arms continues to enjoy success, achieving occupancy of 73% (up from 2022’s 70%) and delivering sales up 16% year on year and a positive EBITDA of £2m.

“The hotel continues to deliver high guest satisfaction and significant press and PR coverage. This includes being on lists for both the ‘Top 50 Boutique Hotels’ and the Times’ ‘Best Places to Stay 2024’.”

Mr Cornaby said directors were satisfied with Artfarm’s loss given the company’s current “development phase”. 

He concluded: “The directors have received assurances from the parent company that it will continue to support the company and accordingly consider the year-end financial position to be satisfactory.”