Leekes posts ‘exceptional’ sales and profits growth

Leekes Retail and Leisure Group has reported ‘another significant rise in sales and profitability’.

The South Wales-based independent business said strong trading in the year to March 31 2016 continued into the first half of the current financial year.

Previously, the Group achieved an increase in turnover of 10% to £78m in the year to March 31 2016, which resulted in an increase in EBITDA of nearly 60% to £6m, and an increase in pre-tax profit to £3.1m.

Now, in the first half of the 2016-17 financial year, it has seen a further rise in group revenues of 20% which in turn, has resulted in an 11% increase in group EBITDA for the first six months to £3.8m and a pre-tax profit of £2.2m.

The Group comprises a portfolio of Leekes five home department stores together with the Vale Hotel, Golf and Spa Resort at Hensol. The retail business recently built upon its expansion into England with the acquisition of Park Furnishers Bristol.

Commenting on the retail results, Leekes Retail managing director Emma Leeke said: “We’re very pleased to report exceptional growth in both sales and profits across all business units in the retail business, with furniture and furnishings, the accessories departments, conservatories, windows and doors, bathrooms and kitchens all contributing significantly to both top and bottom line growth.

“Furthermore, it’s encouraging to see that growth extending to the current financial year with sales up 25% and profits up 65%. The acquisition of Park Furnishers Bristol in March of this year has particularly had a very positive effect on our results, while the continued expansion of the retail business has resulted in us recently carrying out a considerable extension to our warehousing facilities in Mwyndy, Pontyclun with the assistance of a grant from the Welsh Government.”

Group chairman Gerald Leeke added: “The Group has invested over £18m in capital expenditure over the last two years and it’s very pleasing to see that investment paying dividend in the form of increased turnover and profits.”

Leekes, which has over 115 years of trading history, operates home department stores at Coventry and Bilston in the West Midlands; Llantrisant near Cardiff; Cross Hands in Carmarthenshire; and Melksham in Wiltshire. It also runs the original Builder’s Merchant at Tonypandy, in the Rhondda Valley. The company has a fully transactional website at leekes.co.uk, a conservatory site at conservatories.leekes.co.uk and a kitchen site at kitchens.leekes.co.uk.

In addition, Leekes operates four concessions within garden centres selling conservatories, orangeries, windows and doors. These are at The Garden Centre Group outlets in Thornbury, Swindon and Hereford and Caerphilly Garden Centre.

The Park Furnishers store is located on Willway Street in Bristol where it has traded since 1976 offering a full furniture offer of upholstery, dining, carpets, beds and bedroom furniture, together with kitchen, bathroom and conservatory departments.

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