Lakeland tucks into record year
LAKELAND, the family-owned retailer tucked in to its best-ever year of sales thanks to the nation’s continuing love affair with home baking.
With the latest series of the BBC’s Great British Bake-Off reaching its conclusion next, week, the Lake District-based company’s annual results for 2014 were released.
Turnover rose 5.5% to a record £176m while profits more than doubled form £2.5m to £5.4m as gross margins improved 1,7% to 52.1%.
In a review of trading and future prospects, managing director Sam Rayner, who runs the business with his brothers Martin and Julian, said sales had risen across all its channels, with income from its chain of shops up 3.3% and home shopping up 6.1%.
“In addition, steady progress was made in our international division and we are confidently expecting increased activity in this area during 2015.”
With the addition of one new store in Inverness, Lakeland now has 68 shops, while three others in Newcastle, Brent Cross and Peterborough were relocated.
Although no details of the company’s European turnover were included in the statement, on commercial grounds, Mr Raymer said there had been sales growth from the German website and catalogue.
“While a loss was incurred in moving this new business forward, the outcome for the year was in line with expectations and whilst this part of the operation will incur a further loss in 2015, confidence in this project being a success is high.”
The Windermere company which has nearly 1,900 staff nationwide, said it had completed a £10m extension to its distribution base in Kendal on time and on budget. The development is already generating cost savings.
Finally, the Lakeland said it had agreed a five-yeat, £16m revolving credit facility with Royal Bank of Scotland, which will support further domestic and international growth.
The accounts reveal the payment of a £1m dividend during the year as net assets rose from £58.2m to £60m.
