Aquascutum has made a £2.5m loss in its first year trading as a new business, as costs outweighed nearly £9m-worth of turnover.
The luxury business accrued sales of £8.76m in the period from April 11, 2012 – when it was incorporated by its new owners YGM Trading- to March 31, 2013. Operating profit was £4.65m, but after the cost of ordinary activities Aquascutum was left with a £2.52m loss.
Breaking the turnover down, the vast majority - £7.75m – came from retail sales, while just over £1m came from wholesale. Slightly more than £8m was generated in the UK, with £715,000 coming from the Far East. The US and Canada made a small contribution to the top line.
The business employed 114 people during the period, with a total salary bill of £2.8m.
A note in the accounts said the parent company would “provide [Aquascutum] with adequate financial support to continue as a going concern”.
Chief operating officer Mark Taylor has previously told Drapers YGM was prepared to invest in growing the business across both its retail and wholesale arms, and that he was eyeing properties on London’s Brompton Road, Bond Street and Covent Garden, following the launch of a flagship on Great Marlborough Street, opposite Liberties.
Aquascutum is also testing the waters in regional cities such as Glasgow and Manchester through existing concession partners, with a view to opening standalone stores in the next three years.