Sale of Coventry Store Results in Turnover Decline at Leekes

Leekes Retail and Leisure Group has reported on full-year trading covering the 52 weeks ended 31st March 2018.

Turnover at the Group - the activities of which include running out-of-town department stores; a hotel, leisure and golf resort (The Vale Resort at Hensol), and a development company -  reached £85m, down from £89.9m the previous year, and resulting in an EBITDA of £4.3m, which the directors consider to be a strong result.

Turnover declined as a result of the sale of the Leekes Coventry branch, which despite experiencing double-digit sales growth for a number of years, proved too big for the Leekes retail offer.  When looking at options to sub-divide the building, an offer was received to purchase the entire site, which the directors thought was in the best interests of the overall business and will add a £1m bottom-line benefit to the retail business this year.

Emma Leeke, MD of Leekes Retail, said: “We are very pleased to post a great set of results in what has been a particularly challenging retail environment. Our trading in the first half of this year has also been exceptional, with retail profits up substantially as a result of the excellent performance of our conservatory, window and door division, as well as our fitted kitchen and bathroom departments.

Gerald Leeke, the group’s chairman, said: “The Leekes Retail & Leisure Group invests heavily in capital expenditure projects aimed at continuing to develop the business and provide additional income streams to further strengthen the business. We have also diversified into property development over recent years and are delighted that this policy of recycling and reinvesting our profits has helped ensure the group continues to trade strongly in an uncertain economic environment.”

Source : Insight DIY Team

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