Leekes grows sales and profits

Hotel to department store group Leekes Retail & Leisure Group has posted a strong set of results and is forecasting continued growth in both turnover and profits for the forthcoming year.

The group, which recently agreed a new £28m banking facility with Barclays Bank and Lloyds Banking Group to fund its continuing expansion, achieved an annual turnover of £75m (up 6% on a like for like basis) and a 70% increase in EBITDA to £4m for the financial year to the end of March, 2015. 

The group has continued making substantial investment in its retail business in recent years.

This has including the opening of a new flagship store in Coventry in 2012, a £1m modernisation programme at the Cross Hands store, the refurbishment of kitchen and bathroom studios across the store portfolio, as well as a substantial upgrade of its online platform.

The retail division achieved an EBITDA of over £1.7m for the year and commenting on the trading success of its home department stores.

Emma Leeke, managing director of Leekes Retail, said: “With our continued investment in our stores, coupled with improvements in both the housing market and consumer confidence indicators, we are delighted to report a £2m profit improvement this year, with £4m of sales growth driving the bottom line.

"There has been a noticeable acceleration in the sales growth in recent months, with the forward order sales pipeline now up by nearly 30% - which should ensure that our significant improvement in profitability will continue into 2015/16.

"It is particularly pleasing to see the considered purchase departments including kitchens, bathrooms, conservatories, windows & doors all achieving double digit growth, as well as strong sales in our core furniture and furnishings departments.”

The Leekes Group also achieved a growth in EBITDA to £2.1m in its leisure division - the Vale Resort - representing an increase of 10% on the prior year.

Source: Sion Barry - Walesonline.

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