A longstanding retailer with multiple locations across northern and eastern Scotland has reported a return to year-on-year growth in booked business for the current financial year, following a period of financial strain. The business, which faced significant headwinds in 2023/24, attributed its earlier decline to low consumer confidence and rising operational costs.
© Gillies of Broughty Ferry
Gillies of Broughty Ferry saw revenue fall by 5.0 percent to £23.3 million for the year ending 31 August 2024. Inflationary pressure on payroll and subdued demand weighed heavily on performance. Despite these challenges, the company managed to widen its gross margin to 51.6 percent, driven by disciplined operations and strategic pricing.
However, net profit fell 44 percent year-on-year to £747,383, down from £1.34 million. Managing director Tom Rodgers described the past year as "another difficult year", citing persistent high mortgage rates and sluggish inflation as key factors affecting consumer sentiment. He noted that trading had improved in the new financial year, with booked business now showing growth. Nevertheless, he acknowledged that managing rising costs remains a significant challenge.
The company's financial position remains strong, with operating cashflow improving and cash balances increasing to £6.6 million from £5.58 million. Net assets also edged up to £23.8 million, from £23.4 million the previous year.
Mr Rodgers said the retailer is "well placed to deal with the challenges" ahead, supported by "a sound financial base and a talented team". The business operates stores in Aberdeen, Broughty Ferry, Dingwall, Elgin, Perth and Inverness.
Source: www.thefurnishingreport.com