Homebase Store Closures Affected Farrow & Ball Sales

Farrow & Ball's latest accounts reveal that the business has suffered as a result of Homebase's store closures.

The premium paint manufacturer was bought by Ares, a US private equity firm, for £250m in 2014.

In documents filed at Companies House, the premium paint manufacturer said that sales for the year ended 31st March 2019 were £74m, 1% above the 2018 figure.  Operating profit was £18.3m compared with £19.4 in 2018.

The company's key distribution channels are 46 company-operated stores and 1,495 third-party stockists.  The UK accounts for 69% of Farrow & Ball's sales and the company is the country's market leader in premium paint.  France and Germany are also core markets for the business.    

The challenges experienced by the Homebase business and the subsequent closure of 43 of its stores reduced the points of distribution during the reporting year, and a softer housing market and the challenging retail environment have made for unfavourable market conditions, according to the company.

Farrow & Ball's new website launched in March, resulting in an 11% sales increase on 2018.  Online sales now account for 8.8% of group sales, up from 8.3% in 2018.

The company anticipates continued growth and profitability for the current trading year, despite macro-economic headwinds and market uncertainty.  It states it will continue to invest in its operations and further geographical expansion.

Source : Insight DIY Team

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