Range expansion helps drive growth as garden product suppliers reveal latest results

Garden centre suppliers find that expanding ranges has increased sales but warn of risk of Brexit-induced exchange rate fluctuations.


Garden aggregates company Kelkay saw sales for the year to 30 September 2016 rise to £19m from £13.5m. Profit after tax was £3.33m. New products helped increase sales while material price fluctuations remains the main risk. EBITDA was £4.47m, up from £3.08m.

Garden irrigation company Hozelock increased turnover to £49.71m from £49.27m in the year to 30 September 2016. Operating profit before exceptional items increased by 49% to £5.63m on the prior year due to translation on US dollar and Euro sales, couple with costs savings and an efficiency drive within the company.

"Competitive pressure in the UK and Europe is a continuing risk," managed by new product development, rapid response times and strong relationships with retailers.

Hozelock said fluctuations in price of raw materials was an "unquantified" risk post-Brexit.

Outdoor furniture company Kettler GB saw turnover increase 19% in the year to 31 July 2016 with turnover at £20.72m, up from £17.41m. "Commodity price risk" was the main concern for the future. A new RHS range is being rolled out. Kettler said "general market confidence" remains strong and "unnaffected by political issues".

Woodlodge, the ceramic pot company, increased turnover to £17,353m from £16,751m in the year to 30 June 2016 thanks to new product developments in garden furniture and heating, customer service, efficiencies and competitive pricing. Operating profit was £3.4m, similar to the previous year.

Bonnington Plastics had lower "but satisfactory" profits for the 15 months to 31 December 2015. Turnover was £31.68m, with the year to 30 September 2014 at £26.53m. Net profit after tax was £299,279 in the 15 months, down from £1.001m in the year to 30 September 2014.

The company sees uncertainty around demand and exchange rates but has offset by better sourcing, increased ranges and increased selling prices.

Lows of Dundee, which makes industrial fabrics and in its horticulture division produces containers and other items saw turnover increase 2% to £12.66m with profit before tax at £331,364, up from £278,113.

Lows said principal risks are competition, uncertain worldwide economic outlook and fluctuation of sterling against the dollar and euro "which creates both risks and opportunities".

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