Blue Diamond Results Show 'Great Resilience'

Half year results released by Blue Diamond for the 6 months to the end of June show great resilience in the face of Covid-19 says chairman, Simon Burke.

Profit before tax declined by 17% to £6.3m (a 12% decline excluding the profit on sale of freehold properties in 2019), despite the fact that all but one of the 37 garden centres were closed for almost one third of the period, and restaurants for more than half the period.

Total sales declined by 5% while like-for-like sales fell by 16%, being 7% down in retail and 58% in the restaurants.

Factors behind the resilience

This resilient financial performance is due to a number of factors that greatly helped to mitigate the impact of closure.

1. The online and delivery business set up during lockdown,
2. the business rates holiday,
3. the furlough scheme,
4. A majority of landlords helped to support the group with rent reductions.

The rebound in trading following re-opening exceeded expectations and has been sustained at strong levels ever since. The Guernsey based group has also been able to find ways of reducing overhead costs, many of which it will continue into the future.

Cash flow strongly positive

Cash flow was strongly positive so the group did not need to use the additional bank facilities negotiated in March.

Garden centres will be winners

Simon Burke says, “I believe that garden centres will be one of the winners from this crisis, benefiting from a further decline in the attractiveness of high streets and large shopping centres, and people’s reinvigorated focus on their homes and gardens as a result of the pandemic.

“Blue Diamond’s broad, high quality ranges with so much exclusive product position us well to take advantage of these trends.”

Source : Reproduced with permission from George Bullivant at Gardenforum

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