Dobbies reports £48m loss following property write-down

Dobbies has written down its property value to the tune of £54.4m following owner Tesco re-assessing its garden centre asset portfolio.

A Dobbies’ representative said: "We are pleased with our full year trading performance in 2014/15. This demonstrates that our strategy of putting plants and gardening first is working. As well as delivering positive like for like sales growth, our profit and cash generation were also well ahead of expectations and significantly ahead of the previous year. The underlying business again performed well with sales growing by 7.7 per cent to £152.9m and gross profit growing by 9.3 per cent to £77.0m.

"The accounts show a loss for the year of £48.4m. The loss is due to an impairment charge of £54.4m on intangible and tangible assets. 

"The issue of goodwill impairment relates to the acquisition of Dobbies in 2008. In common with the wider retail industry and standard accounting practice, we assess the value of our property portfolio on an annual basis. As a consequence, we have written down the value of our property assets accordingly.

"Our strategy remains focused on our core categories of plants and gardening which we are confident will fuel our growth in the future."

Connor Campbell, a senior market analyst at, said: "Things are far from rosy for Dobbies Garden Centres, with the company’s full year report showing a worrying £48 million fall into the red following a write-down on the value of its stores. Despite an eight per cent jump in sales to £153 million the profit plunge (down nine per cent even excluding the £54.4 million in impairments) was all investors took away from the update, helping to send Tesco, which owns the brand, to fresh 15 year lows."

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