British Garden Centres’ transformative year saw turnover increase by almost 50 per cent as it more than doubled the number of outlets operated.
The Lincolnshire-based horticultural retail specialist swooped for 45 new locations from operator Wyevale, increasing its presence significantly in the south, while bolstering other regions.
It saw sales hit £49 million in the calendar-aligned year for 2019, with gross profit up £3 million to £12.2 million. Operating profit came in slightly below 2018’s £2.7 million at £2.5 million.
Headquartered in Alford, with the flagship store in Brigg, as a company it retains the original Woodthorpe Hall Garden Centres name - but switched the brand several years ago. The phased transactions completed this time last year.
In his annual report, director Robert Stubbs said: “The directors are pleased to report another very good year of trading, The group has undertaken a substantial acquisition programme during the year resulting in the number of centres operated more than doubling. Turnover increased by approximately 50 per cent (46 per cent) due to this expansion with gross margins falling slightly as the acquired centres were integrated into the business and stock sold off.
“The group has seen a fall in net profit due largely to one-off costs incurred in relation to the acquisitions and increased overheads for which economies of scale are yet to be fully achieved. The increased level of operations is expected to yield substantial economies of scale in respect of improved buying power and dilution of fixed costs in the coming years.”
Staff numbers increased 61 per cent as a result of the new garden centres coming on board, from 729 to 1,174.
"The substantial acquisition programme undertaken during the year has seen the group become one of the 海角视频's leading garden centre operators," Mr Stubbs added. "A plan is in place to substantially refurbish and develop many of these centres in order to enhance the offering to customers and further cement the group's reputation as a key operator within the industry."
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Turning to Covid-19, Mr Stubbs underlined a healthy return for a retail/leisure sector that got off more lightly than most, despite a full closure coming at the height of spring.
BGC made a point of championing mental health benefits, with a focus on the home surroundings also playing in their favour.
“The Covid-19 pandemic and the 海角视频 lockdown has had some impact on the group, but as the garden centre industry was one of the first sectors to re-open the impact has not been as significant as it may have been,” he said in the report. “The garden centres were fully closed for four weeks but were able to offer click and collect or delivery service. With the relaxation of the 海角视频 Government guidelines the garden centres were able to re-open on May 13 and on July 4 the garden centres’ restaurants were able to re-open.”
Mr Stubbs confirmed BGC had taken advantage of the furlough scheme for the closure period, adding: “The directors have ensured the business was in a position to re-open safely when able to do so, and trading has been strong in the period up to the accounts approval date.” They were signed off on September 30.
A leisure park that adjoins the original Alford outlet also re-opened in early July. Expansion plans were halted, but Mr Stubbs said this current year has seen 44 new static caravan bases and 12 luxury lodge bases added, with a number of plots already sold.