Henri Lloyd fashions a loss after £2.8m directors’ bonus

HENRI Lloyd, the privately-owned fashion and marine clothing and accessories firm posted a loss last year after a £2.8m payout to directors.

The Worsley, Salford-based company founded in 1963 by former Polish soldier Henri Strzelecki and now run by his sons Martin and Paul, has recently branched out into motorsport and produces a range for the Mercedes GP Petronas team – led by multiple Formula 1 world champion Michael Schumaker.

In the year to the end of December 2009 parent company Henri Lloyd International saw sales grow from £25.4m to £27.4m. Before the £2.855m payment the business made an operating profit of £1.06m compared with £1.6m in 2008.

After the payment of what was described as a “special bonus under directors emoluments” the firm made a £1.8m loss, compared with a profit of £1.6m the year before.

In their report to the accounts filed at Companies House, directors said they “continue to follow strategies to react to market changes to ensure the continued stability and strength of the company, enabling it to take advantage of opportunities as they occur in an economically challenging market place.”

In identifying the risks the group faces, the directors note that there has been ‘significant restructuring’ in the last few year in the wholesale markets for both fashion and sailing, and a number of strategies are being pursued in response, including strengthening relationship management with key retailers.

Developing the brand and international growth are key factors for growing the business, the report says.

“We now have a distributor in most European countries, Japan, the USA, Australia and the Middle East. We continue to develop links with other markets.”

The business has switched banks to HSBC in a move designed to “assist its global presence.”