Leekes Group Posts Strong Full-Year Profits

Leekes has published its accounts for the year ended 31st March 2024, advising of strong EBITDA and pre-tax profits.

The business currently trades from five large department stores and a builders merchant, plus a leisure resort; a conference and wedding venue, and a recently opened distillery. Stores are located in south Wales, the South West and the West Midlands, offering DIY and home improvement goods, home furnishings, housewares and garden items, as well as fitted kitchens, bathrooms and bedrooms. 

The family-owned business noted EBITDA of £6m, down from £8m in the previous year, and profit before tax and exceptional items of £3.1m, down from £5m.

In documents filed at Companies House, Emma Leeke, one of the company's directors, said: “We are delighted to report continued strong results despite the well-publicised challenges faced in the retail sector. Our excellent profitability over the last four years has enabled us to continue our programme of investing in significant capital expenditure in our retail business. We are excited by the successful opening of our newest store in Cheltenham last week and the imminent start of the final phase of the refurbishment of our flagship store in Llantrisant, South Wales.”

The directors said that the retail business had delivered sales of 12% less than the previous year, with EBITDA of £2.8m (2023: £4.9m) and profit before tax and exceptional items of £1.2m (2023: £3.2m).  Gross margin improved by 2.7% to 42.6% while administrative costs increased by nearly £1m, mainly attributed to the impact of inflation on payroll and property costs.

Leekes cited decreased demand for high value home purchases amid challenging economic conditions and an inflationary environment for the decline in sales, but said it had continued to trade strongly since the reporting period ended, and it expects the newly-opened Cheltenham store to have a positive impact upon trading in the next tax year. 

Source : Insight DIY

Image : Leekes

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