Kitchenware company’s profits plummet by two thirds
Cumbria-based kitchenware specialist Lakeland has seen profits tumble by two thirds as a result of a dip in sales and increases in operational costs.
Pre-tax profits for the year ended December 31, 2016 fell to £1.2m (2015: £3.3m) while turnover slumped 6.5% to £167m (2015: £179m).
The company expanded into the Australian market through a partnership with The Good Guys, initially opening 10 “store-in-store” locations during the year with further expansion planned, including standalone stores.
The number of UK stores remained at 69 with four stores refitted during the year, including a £1m refit to the flagship store in Windermere.
Operating profit fell by more than half to £1.4m from £3.4m and although the company’s cash position has decreased in the year, the company has £5.4m in the bank (2015: £10m).
“The company’s current revolving credit facility of £16m with RBS remains in place until 2019 and will provide a strong platform for further UK and international growth,” the report accompanying the year-end accounts said.
During the year its four directors received a total salaries of £497,000, down from £637,000 in 2015. The highest paid director got £189,000.
The company’s headcount fell from 1,934 in 2015 to 1,841 and its wage bill was reduced from £24.5m in 2016 to £23.3m.
