Lakeland upbeat despite profits dip
KITCHEN-ware retailer Lakeland has posted a dip in profits after investing nearly £7m in expanding its stores portfolio.
The family-owned, Windermere-based company, which operates 42 stores nationwide, said sales in during 2008 rose 7.3% to £134.8m, but profits slipped from £6.2m to £4.2m.
During the year Lakeland opened five new stores in Bicester, Bromley, Derby, Liverpool and Northallerton.
Capital expenditure was £6.9m, up £3.3m on the previous year.
In a statement accompanying the accounts, which have just been filed at Companies House, directors Sam, Martin and Julian Rayner, who between them own the business, said: “The directors are confident about the prospects. Uncertainties still remain with regards to the length of the UK economic recession and how this will impact the retail sector.
“The directors believe the business is well placed to capitalise on the opportunities ahead.”
Lakeland, which has its distribution hub in Kendal, saw its employee numbers rise from 1,341 to 1,449. It sells more than 4,000 products through its stores, online and via mail order catalogues.
The business’ roots can be traced back to 1956 when agricultural feed salesman Alan Rayner set up a mail order business supplying plastics and home freezing products.
After retiring in 1974, the business passed to his three sons.
