Jacobson returns to profit and looks for more

NORTH West footwear group Jacobson returned to profit in the last financial year and grew sales to £60m despite a tough market backdrop, it emerged today.

The Rawtenstall company behind the Gola, Lonsdale and Lotus brand, is also a major supplier of own-label shoes to multiple retailers.

Figures for the year to the end of September last year show the company’s turnover growing 4% from £58m to £60.4m. Operating profits rose from £1m to £3m, while at the bottom line, the business made a profit of £1m compared with a loss of £1.3m in 2009. 

Managing director Harvey Jacobson said he was pleased with progress, and said the momentum from last year had continued into this, with half year sales well ahead of 2010.

Mr Jacobson, who in July will become chairman of the family-owned group, to be replaced by Tony Evans, said: “I think the figures are even better than they first look – our bank debt is low.  If you look at shareholders, including me, as being passive lenders, then the picture is more positive.”

Subsidiary D Jacobson and Sons, which accounts for 78% of group turnover grew profits from £2.3m to £3.25m and Lotus Ltd, another part of the group, accounting for 20% of sales, saw its profits rise from £428,000 to £531,000. 

Futhermore, Mr Jacobson said trading in the six months to the end of March was already “significantly” ahead of where it was this time last year, and the company’s order book was buoyant too.

“Even though our performance is really good, it is important to say that it’s really tough out there on the high street so I’m not going to be overly-confident.”

Raw material costs including cotton and oil – which is a key component in the manufacture of rubber soles for shoes – have also soared, he said.

Mr Jacobson said he had “no intention” of selling the company and that his move to chairman would allow him to focus on strategy, business development and acquisitions, while Mr Evans, who has hitherto run the Gola arm would run the operational side.

“He, like many of my team, have been with me a long time – I’m very fortunate in that respect. I expect it will be a seamless transition.

“I want to have more time too – to look at other investments and opportunities,” he added.