Ruia Group’s profits surge to £5.3m

NORTH West bedding to clothing firm Ruia Group – which is behind retail chain Sock Shop – has seen its pre-tax profits rocket from £312,521 to £5,372,158.

Newly published accounts also reveal that the entire share capital of the family-owned business was acquired by Guernsey-registered Ruia Holdings on July 14.

The company, which operates from a Victorian mill in Radcliffe near Manchester, is also behind bedding brands Belledorm and Richard Howarth and the clothing businesses Drew Brady and golf specialist Glenmuir.

The financial statements for the year ended April 30 say that its trading – which has seen turnover rise from £41.26m to £41.88m over the past year – is in line with management expectations.

Accounting for the steep rise in profits, the report states: “The group has implemented a strategy that will continue to focus on beneficial trading activities core to the business with results targeted to be released during 2010/2011.

“The directors feel that the key performance indicators for the group are gross margin levels, monthly management accounts, sales reports for each trading division and close monitoring of cash, bank, debtor and stock levels.”

The report states that the major factors impacting on the business are its exposure to ‘currency risk’ as well as the vagaries of interest rates.

The Sock Shop, which was acquired out of administration by Ruia Group in 2006, has sites at a number of airports while bedding brand Belledorm opened a shop at the Lowry Outlet Mall, in Salford, last year.

The accounts also reveal the highest-paid director earned £93,267 over the past year which was down from £974,336 in 2009.