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Blackwell’s slipped back into a loss last year after making a profit for the first time in a decade the year before. However, like-for-like sales at its bookshops and online were up 2.9% and the company is able to fund its own investments, which was a “positive step”, the chain’s c.e.o David Prescott said.
Accounts filed at Companies House for the year to 27th June 2015 show that Blackwell’s made an operating loss of £2.3m from its continuing operations, up from £0.3m profit the year before. This excludes the one off release of dilapidation provision for £2.4m in the prior year and also excludes the now closed library service business. This year’s £2.3m loss figure also includes £855,000 of depreciation as a result of its ongoing investment programme.
Blackwell’s core bookshops and online business “successfully outperformed the marketplace”, according to the private firm, with sales up 2.9% across those channels. Total sales for the period though were £45.8m down from £46.1m.
The chain’s c.e.o David Prescott said the company had continued to invest in its e-textbook platform Blackwell Learning during the year and had now built a “world class platform for use within higher education, which is now moving from the investment phase into the operational activity.” The company also invested in installing new tills into bookshops and in its website during the period, funded from internal resources without the need for additional capital, Prescott said.
“It is positive that Blackwell’s increased sales and it is good that the investment into the business is coming from internal rather than external funding,” Prescott said. “The biggest story for us is that we can make big investments into the future of our business from our own resources.”
The accounts also reflect the “challenging conditions in the retail market” and “support the decision to focus on a combined strategy of its physical shops and online presence,” Prescott added.
“Blackwell’s is building a sustainable future through investment in digital opportunities whilst maintaining a strong focus on the needs of its core customers,” he said. “We continue to develop strong partnerships with key academic institutions whilst offering world class customer service and leveraging our academic expertise and the heritage of our brand.”
In the year the accounts relate to Kieron Smith joined Blackwell’s as digital director, to lead the company’s growth in the digital market through both Blackwell Online and the Blackwell Learning. The company also closed its London Charing Cross shop and opened one up in Holborn.
Prescott said the company was striving towards an operating profit and at that point, still aimed to transfer its ownership of the company to employees through a John Lewis-style share scheme.
Blackwell’s has also revealed it has signed an agreement with Oxford-based Creation Theatre Company to bring live performance theatre to the Broad Street bookshop in the city. The new arrangement will begin with a five-week run of King Lear to be staged in the shop’s iconic Norrington Room in February.
“This new and exciting agreement is part of a developing relationship between Blackwell’s in Oxford and Creation Theatre,” said Zool Verjee, deputy manager at Blackwell’s Broad Street bookshop. “We have previously staged performances in the Norrington Room and we both share a commitment to not only promoting great literature but also working together to bring it to life for people. The run of King Lear, in this very special setting, is going to be a very exciting development for all of us.”