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Foyles has seen a drop in profits and revenue for the financial year ended 30th June 2013.
The book chain, which has five branches in London and one in Bristol, reported pre-tax profits of £83,294, a decline of 45% on 2012's profits of £152,552.
Turnover has also dropped slightly, standing at £22.9m, down 2.5% from £23.5m in 2012.
The declines were attributed to disruptions at the chain's flagship Charing Cross Road branch, and the impact of the Olympics on trading at the Westfield Stratford City store, and across London generally.
The company said: "As in the previous two years, sales at the flagship Charing Cross Road branch continued to be disrupted by the Tottenham Court Road Underground Station development. This disruption was exacerbated by below-budget trading during London 2012, an experience shared by many retailers across London. Despite being well-positioned at Westfield Stratford City, visitor traffic was actively diverted from retail areas directly into the Olympic park."
However, it added that the chain was seeing "significant year-on-year improvements at the Westfield Stratford City store", with strong Christmas sales.
Foyles said that disruption at the Charing Cross road store had been mitigated by hosting regular events, and a summer festival with other retailers on the street, while investment has also been put into the Foyles website. Sales at the other branches at Royal Festival Hall, St Pancras International, Westfield London and Cabot Circle in Bristol were described as "satisfactory".
Chief executive Sam Husain said that focus was now on opening a new store at London's Waterloo Station in January 2014, and moving the flagship store to new premises on Charing Cross Road later in the spring.
He said: "As well as the imminent opening of our new branch at Waterloo Station, our focus is on the move of the flagship store to 107 Charing Cross Road, the former Central St Martin’s College of Art building, less than 100 metres from our existing shop. The vibrant spaces, the layout of the floor plates which include a larger gallery and café, and the general ambience of the new store present an opportunity to introduce new retail practices that will make a visit to this bookshop a necessary experience for Londoners and visitors alike."
Husain added: "We also remain committed to our core expertise of range bookselling and will ensure that our new flagship is always well stocked with books, in specialist departments run by knowledgeable and helpful booksellers, making browsing and buying as enjoyable as possible."