‘Tricky time’ for Timpson as profits slip
TIMPSON, the family-owned retailer whose shops offer key-cutting shoe repairs, dry cleaning and photo-processing services, endured a “tricky time” on the high street last year as profits fell.
In the year to September 2012 turnover grew by 3% to £136.4m but pre-tax profits slipped 21% to £10.1m.
In newly-filed accounts chairman John Timpson said: “A tricky time on the high street is reflected by lower profits compared with the record we set last year, but, despite making less money our business has made a lot of progress and continues to keep cash in the bank. Short term pressures have not stopped us from taking a long view.”
Wythenshawe-based Timpson has already opened 88 shops mainly in conjunction with Tesco and Sainsburys and expects to launch a further 100 – in out-of-town locations and in supermarkets – in the current financial year.
The company is also developing is warehouse and distribution support to its chain of 1,000 shops, and plans a revamp of the Max Spielmann portfolio. Key cutting is the group’s biggest business, but its fastest growing service is drycleaning and its watch repair arm pulls in £20m a year.
The group, which employs 2,500 people, paid an interim dividend of £3.9m, up from £400,000 last time. The directors did not recommend a final dividend.
Timpson is committed to good causes and has a foundation which runs a restaurant on Anglesey called the Oyster Catcher that operates a social enterprise training ex-offenders. The foundation has also opened workshops in prisons.
