Deckers profits rise as wholesale arm shines
FAMILY-owned leisure company Deckers Hospitality Group – which owns restaurants, gastro-pubs, hotels and drinks wholesale business – has grown profits nearly 20% despite a slight dip in sales.
The Rochdale-based company, run by chairman Cliff Brierley, his son Max the MD and daughter Victoria, the finance director, described trading conditions in the year to the end of March as “difficult”.
Turnover in the year to the end of March was £34.3m compared with £34.7m the year before, but an improvement in gross margin lifted ebitda from £1m to £1.2m and pre-tax profits from £249,000 to £296,000.
Deckers, which was founded in 1989, owns two hotel, the Royal Toby at Castleton, Rochdale and the Pennine Manor in Huddersfield, three restaurants including Deckers on the Water at Sale Water Park, Trafford, and gastro pubs in Dunham (Rope & Anchor) and Mobberley (Plough & Flail).
Last year it sealed a £13m financing deal with Lloyds Corporate Markets to support its growth and the refurbishment of the Rope & Anchor.
The group, which has 400 staff, also reorganised itself with the creation of the overall holding company and seven 100%-owned subsidiaries, the largest being Deckers Restaurants the liquor wholesaler and butchery business, which accounts for £25m of sales.
In his review of trading and future prospects chairman Cliff Brierley said: “Despite difficult trading conditions the group increased profits before tax by 19%, sales were impacted but this was recovered through the gross margin. The margins throughout the retail estate continue to be squeezed through increased raw costs, but the increase in margins in the wholesale business compensated for this.”
Mr Brierley said that with trading conditions challenging this year and into 2012 the directors “do not anticipate any significant acquisitions or redevelopments in the retail estate”, but said management were “continually striving to improve the customer experience” to retain existing and encourage new customers.
