Gail’s expects to open 40 new locations this financial period as it moves toward its 300-store UK target.
The announcement appears in the group’s most recent full-year accounts, submitted to Companies House by parent company Grain Topco Limited.
The filings reveal that Gail’s revenue reached £219.8m for the year ending 28 February 2025, representing a 23% uplift from the previous year’s £179m.
Adjusted group EBITDA, incorporating results from wholesale division The Bread Factory, increased by 19.7% to £53.6m in FY25. The uplift was attributed to expanded trading space and sustained consumer demand.
However, rising staff and utility costs compressed margins, with the operating margin slipping from 9.5% to 9.2% and gross profit margin edging down from 38.8% to 38.2%. Loss before tax also widened, increasing from £7.4m to £7.8m in FY25.
Gail’s opened 36 new shops during the period, including its first location in the southwest, in Bristol. It has since added two further sites in the city, along with new shops in Bath, Salisbury and Marlborough. “We intend to continue this wider national growth in the year ahead,” the company said.
This progress puts the business on course to meet the target set out by Gail’s MD, Nick Ayerst, at MCA’s Innovation Conference in October, where he noted the firm had “ambitions to get to 300 bakeries from the 180-odd it is today”.
Gail’s, named Bakery Retailer of the Year 2025, is expanding into travel locations, including London stations and Gatwick’s South Terminal. Its products also continue to sell well in Waitrose and online.
The brand continues to prioritise sustainable baking, having launched The Wheat Project earlier this year to promote bread made from wheat that supports biodiversity and improves soil health. Among its core key performance indicators is a commitment to doubling its use of regenerative flour by February 2026.
The company reported a 178% year-on-year increase in loaves made with regenerative flour and is targeting a rise in waste sent to recycling or composting facilities to 70% by the end of this year, up from 60% in 2024.
The retail division remained the group’s strongest performer in both growth and profitability, while wholesale revenue also advanced, climbing from £83.7m to £96.4m. The year saw further investment in production capacity, with more manufacturing lines moving into the company’s second central bakery in Milton Keynes.
Under The Bread Factory brand, the wholesale division runs three further manufacturing sites: Hendon in northwest London, which houses a dedicated gluten-free unit; St Albans; and Manchester, where the business plans to move to a larger facility next year.
Dan Barrett was internally promoted to MD of The Bread Factory earlier this year, assuming oversight of grocery and foodservice supply for brands including Gail’s, Bertinet, and The Flour Station.
