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Profits rocket at Oliver Bonas

Group profit after tax at lifestyle retailer Oliver Bonas soared by 150% to £4m for the 13 months to 31 December.

Olly Tress

Olly Tress

Operating profit jumped 140% to £5.3m, as turnover increased 28% to £42.6m.

Like-for-like sales were up 14%, which the retailer described as an “outstanding result”, given the current climate.

A £3.2m dividend will be paid this year, up from £683,309 in 2014. 

During the period, Oliver Bonas opened nine stores and closed two, taking the total to 57 in the UK.

The business will continue to focus on in-house designed product in 2016, and further investment in this area is planned. In 2015, 62% of the company’s sales came from Oliver Bonas product, compared with 54% in 2014.

Earlier this year, Oliver Bonas became the first high street retailer to pay the voluntary living wage of £7.85/hour and £9.15/hour in London, which is higher than the mandatory national living wage.

It said the short-term implementation costs had been “considerable”, but argued that it would lead to better retention rates and happier staff, which would in turn lead to better sales.

The firm said the UK’s decision to leave the European Union may result in an economic slowdown that would “impact sales and profitability” in the short term.

It added that the drop in the value of the pound has hit input costs, as many of its suppliers price goods in dollars. Oliver Bonas said the rising costs would hit gross margins, but said it hoped the challenges caused by the Brexit vote would be mitigated by an increase in tourist spend.

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