Paphitits cautious despite rise in Ryman’s profits

RYMAN, the nationwide chain of stationery stores owned by investor and television ‘Dragon’ Theo Paphitis boosted sales and profits in the year to the end of March.

Newly-filed accounts for the Crewe-based company show a 13% rise in pre-tax profits to £4..7m on turnover 5% higher at £123.4m.

Ryman, which has around 240 shops, said it has been investing heavily in technology, including a new website which was launched in June, to develop a multi-channel presence.

Mr Paphitis described the financial performance of the business, which employs 1,491 people,  as ‘healthy’ in the face of a challenging retail and economic environment.

“As well as reaping the benefits of the recent consolidation of its stationery brands and the investment in infrastructure and systems, the positive response to the challenging environment by the group’s dedicated management and staff, both in stores and head office, contributed greatly to our results.”

He said new stoes in Glasgow and Leicester had recently opened.

“Further significant has continued has continued in the group’s e-commerce operation with a new website launched in July this year. Further enhancements are underway to provide a truly multi-channel experience to our customers, whether consumer or business.”

Looking ahead, he said the outlook was likely to remain ‘very challenging’ for the retail sector, particularly with VAT rising 2.5% to 20% on January 1.

“The continued uncertainties with the economy, including the likely impace of public sector spending cuts and the increase in VAT from January 2011 announced in the June budget, are likely to continue the pressure on the retail sector, In this respect, the group remains very cautious,” Mr Paphitis added.

Managing director Malcolm Cooke said the recent bad weather had made trading even more challenging.

“It’s not helped at all – but thanks to some sterling efforts by our staff we’ve opened every store every day. Overall we are about level on the pre-Christmas trade of last year.”

Despite the challenging market place he said Ryman was keen to grow: “There are always opportunities at times like this – probably more opportunites than normal, and we’re keeping our eyes open.”