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Gardners brushes off profit decline

10.01.08 Graeme Neill

Wholesaler Gardners has reported a 35.2% drop in after-tax profit to £3.4m for the year to end-February 2007, while turnover fell 2.4% to £136.8m. However, parent company The Little Group stressed that the drop in profit reflected an increased investment in the business, and that turnover should exceed £150m for the current financial year.

"It was a short-term hit," said chairman Jonathan Little. "Wholesalers typically respond to the retail marketplace but we have had substantial growth in the long term over the past few years."

In a financial statement released to Companies House, the wholesaler said that profit fell over the period from £5.3m to £3.4m. Turnover also dropped by 2.4% from £140.2m to £136.8m.

However, in the trading statement Gardners said that it was a "satisfactory sales and profit performance in an increasingly competitive market". It said the 2006 merger between Ottakar's and Waterstone's initially affected sales but it was able to recover by the end of the financial year.

Little added that a strong high street performance as well as continuing success online meant that the past 12 months were healthier for the wholesaler. "We hope that in this coming year that the business starts to see some major financial benefits after the investments we have made in the company." Among the investments made was the purchase of library supplier Askews in September for an undisclosed sum.

Retail Gardners Graeme Neill The Little Group

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