Handbag and footwear business Jane Shilton has reported a pre-tax loss of £1.9m for the year to June 30, 2012, as it prepares to sell its footwear division.
Turnover for the period was £14.7m, down 3.2% from £15.2m the year before. It comes on the back of a £575,000 loss in the previous 12 months.
Jane Shilton, which operates 39 department store concessions in retailers including Beales and Browns of York, said it made an operating loss of just over £1m as a result of the wider trading environment.
“The retail environment has remained challenging, with continuing demand for promotional activities,” the directors’ report said.
“The effect of unseasonal and disruptive weather patterns in 2012 has resulted in further lost revenue.” The business also had to write down nearly £750,000 as an exceptional charge from its footwear concessions business, as part of its plans to sell the footwear division to retailer Shoon.
Although no figures have been disclosed, the report noted the sale, which will be completed on July 31 this year, “will have a positive effect on cash flow” at the business. Jane Shilton will then focus on the wholesaling, commissioning and brand licensing of handbags.