Efficiencies boost Timpson’s bottom line
TIMPSON, the family-owned retailer whose shops offer key-cutting shoe repairs, dry cleaning and photo-processing services, has posted a 20% hike in profits, despite challenging conditions on the high street.
John Timpson, chairman of the 900-strong chain of shops, which also includes 200 Max Spielmann stores, told TheBusinessDesk.com the group had become more efficient, and would continue to invest in the future.
He said: “During such a difficult time on the high street many company chairmen will produce a report peppered with excuses for a poor performance. Heavy snow around Christmas 2010, and increase in VAT, a creaking economy and riots in summer 2011 have all caused problems. But we are not complaining. Despite all these diversions we still increased profits.
“We continued to invest in the future, not only by opening 30 new shops, but also by refitting existing stores. In Max Speilmann the move from merchandise to services has made a massive difference to margins. The introduction of portraits, photo gifts and and a restoration service are making Max the market leader.”
Results for Offerhappy, the parent company of the group – which away from retail also includes two Anglesey venues and the events organiser Out There Events – show profits rising in the year to November 1 2011 climbing 20% from £10.6m to £12.8m.
This came despite a near £3m fall in turnover to £131.9m compared with £134.8m – mostly due to a 53 week trading period in 2010.
Mr Timpson said: “We were pretty much the same like-for-like – the extra week does make a difference.”
The company, which was founded by John Timpson’s great-grandfather William as a shoe manufacturer in 1856, is committed to a number of good causes and social enterprises.
These include giving jobs to former prisoners – so far it has recruited 320 offenders – 140 of whom are still employed in the business, which has around 2,600 staff in total.
In May, after a £3m investment in rebuilding the premises, the group opened the Oyster Catcher restaurant on Anglesey – a social enterprise based on TV chef Jamie Oliver’s Fifteen project in Cornwall.
The Oyster Catcher hires and trains young people from Anglesey, giving them a chance of a career in catering.
During the year the Timpson Foundation was set up to guide the work and support the group gives to good causes, chief aiming which is a pledge to support Manchester charity After Adoption with £200,000 a year over the next five years. The majority of the funds are raised through customer donations in store.
Looking ahead Mr Timpson said the group would continue its strategy of working with multiple retailers such as Tesco and Sainsbury by opening concessions in their stores.
“We’re providing extra services to their customers under one roof and it’s working well. We’ll be opening another 40 or so shops this year.”
