A UK home department store, has reported strong financial results for the year ending 31st March 2024, despite facing economic challenges such as inflation and reduced consumer spending on high-value home goods. The store, Leekes Retail & Leisure Group, recorded an EBITDA of £6m and a pre-tax profit (before exceptional items) of £3.1m.
Additionally, Leekes completed a £25m refinancing agreement with Barclays Bank, which has supported the business for two decades. Group Finance Director Mike Fowler highlighted the reduction of net bank debt by a third since the pandemic and gearing levels now at 15%.
Photo: Leekes.
Acknowledging the economic pressures, the company attributed its success to a 270 basis point increase in gross margin, reaching 42.6%, and enhanced operational efficiencies. This helped the retail division maintain its profitability, with an EBITDA of £2.8m and a pre-tax profit of £1.2m.
Managing Director Emma Leeke expressed satisfaction with the results, emphasising the continued investment in their retail operations, including the recent opening of a new store in Cheltenham and ongoing refurbishments at their flagship Llantrisant store in South Wales.
The group's hospitality segment, including the Vale Resort in South Wales, marked its 25th anniversary with a turnover increase of 7%. The Hensol Castle-based distillery, the group's newest venture, also showed growth and received further investment.
Source: www.furniturenews.net