Notcutts Reports Dramatic Drop in Operating Profit

The Notcutts garden centre chain has reported on trading for the year ended 28th February 2018.

Notcutts reported a 4.8% rise in turnover to £74.7m, compared with £71.3m in the previous year when it increased by 5.3%.

Pressure on margin levels and increased costs, however, led to operating profit reducing by 62.4% to £633,908 following an 86.6% increase in the previous year.

The company has a programme of investment in place and redeveloped Staines Garden Centre in March 2017.  Redevelopment work on the Woodford Park (Stockport) restaurant and the Rivendell Garden Centre (Widnes) in January and February 2018, respectively, and will be completed in the current financial year.

Notcutts has secured planning permission for future developments in Booker (High Wycombe), Garden Pride (Ditchling), Solihull, Wheatcroft (Nottingham) and Woodbridge (Suffolk).

The new Notcutts brand will be rolled out across all of the chain's 18 centres by the end of the current year and the company intends to launch an online store in 2019. 

Going forward the company says it plans to maintain its focus on developing the garden centre portfolio in order to continue to improve the profitability of the business. 

Notcutts Chief Executive Nick Burrows said:

“Like others in the sector we experienced pressure on margins and increased costs associated with transportation, business rates and the national living wage,” he admitted. “In such an economy we opted not to pass cost increases directly onto customers. Our approach was therefore very much on driving increased footfall and gaining market share as a solid foundation for new growth for when the post Brexit economy stabilises.”

Source : Insight DIY Team and Notcutts

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.