Profits double at expanding retail group

West Retail Group, the parent of  kitchen manufacturer Wren Kitchens and online electrical retailer Ebuyer, saw turnover surpass £700m in 2018 and profits double.

Posting results for the year ending 31 December 2018, the York-based holdings company saw turnover rise to £701.1m compared to £607.1m achieved the year before. The group also reported a significant increase in pre-tax profits, rising from £17.7m to £38.3m.

Much of the growth was attributed to the success of Wren Kitchens, which reported a 20.7% increase in turnover from £406.6m to £490.7m. The kitchen retailer also saw pre-tax profits rise from £16.5m to £37.1m.

Wren Kitchens comprises 77 showrooms and the directors believe that the retailer has “significant opportunities” to expand across the UK as it is currently operating around a third of the number of showrooms as its biggest rivals.  

Since this financial year has ended, new showrooms have been launched in Ayr and Eastbourne, with negotiations ongoing for several other sites.

Despite the electronics sector remaining “exceptionally competitive”, Ebuyer also reported a 5% increase in sales, rising from £202m to £212m. Pre-tax profits, however, maintained at a similar year-on-year total of £1.2m.

Going forward, director J Pullen noted that the main challenge is the outcome of Brexit. He said: “Whilst the prices charged by suppliers will inevitably increase, the extent to which these prices can be passed on and the impact that has on consumer confidence is unknown. That being said, the directors believe the company is well placed to withstand this pressure.”