Foyles reported a loss last year due to the closure of its Westfield White City branch and the move of its new flagship store, although sales were up 2.2%.
Results for the year to 30th June 2014 show that the six-shop mini-chain slipped into a loss of £600,000, up from a profit of £100,000 in 2013. But the company attributed the deficit to “significant exceptional write-offs in respect of the anticipated closure in the following year of Westfield White City, costing £0.4m, and the move of the flagship store” which opened in June 2014.
Annual turnover in the period increased by 2.2% to £23.4m, up from £22.9m in 2013. Gross profit, meanwhile, was up 3.7% from £6.29m to £6.52m.
Sam Husain, the outgoing c.e.o of the company, said Foyles was primed for expansion this year. “2013-14 was a period of change and consolidation for Foyles, crowned by the move into a new custom-designed flagship bookshop on London’s Charing Cross Road,” he said. “We have taken the opportunity to consolidate our extraordinary expenses as we prepare for further expansion in 2015. Although we have not seen profit in this period, we are now in a very strong position in terms of cash flow. The board would like to record its appreciation of the outstanding service, dedication and commitment of the staff.”
The company said its balance sheet has also been strengthened with a rights issue of shares. “The cash position remains good, with an EBITDA of £356,433, down from £753,645 in 2013 and further undrawn reserves of £1m,” Foyles said.
Husain will be replaced in his role as c.e.o in April by former Hamley’s c.o.o. Paul Currie. Currie has told The Bookseller he intends to maximize the power and reach of the strong Foyles brand in his period of leadership.