Dobbies Reports £130m Loss

Dobbies Garden Centres Group blames difficult trading conditions in the year to Feb 2023 for declining sales and a pre-tax loss of £130m.

Sales fell -8% to £279m (£304m) for the 53 weeks to 5 March 2023.  The group says unseasonal weather during the peak Spring/Summer period was exacerbated by macroeconomic headwinds stemming from the war in Ukraine, inflation and the cost-of-living crisis.

As a result gross profit fell -19% to £122m (£151m), indicating that the gross margin had fallen to 43.8% (49.8%).  The main elements are an underlying operating loss of £-34.4m, exceptional items of £-35.5m and finance costs of £-60.8m.

Repositioning

In response to the difficult conditions the group was repositioned with an absolute focus on value.  The accounts say that it has continued to develop a robust and efficient platform to support resilience and future growth.

Delayed refinancing

The annual report states that in the second-half of the year trade was impacted by the delayed refinancing of the group's debt facilities. This necessitated short term cash preservation including discounting of stock and reduced intake, which in turn affected stock availability.

Refinancing

Ares acquired the company in February 2023 and the group was recapitalised.  The Group moved to a net assets position of £53.8m (27 February 2022: net liabilities of £84.1m). As a result, Dobbies now believes it has a significantly improved foundation and is firmly on the road to recovery.

Dobbies has 77 stores across the UK, employs 3,800 colleagues and has welcomed over 23 million customers in the year to date.

Source : Reproduced with permission from George Bullivant at Gardenforum

Image : Stewart Attwood Photographer / Dobbies

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