Blue Diamond reports record profits after adding Wyevale garden centres

Blue Diamond garden centres has reported record profits for the first six months of 2019.

The 37-garden centre group produced a profit before tax of £7.6m, which was a 56% increase on 2018, and was the result of strong trading in both the core business and the nine garden centres bought from Wyevale in the second half of 2018.
 
Total sales increased by 57%, while like for like sales also grew by 12%, "driven by outperforming the industry across most major categories and the generally benign weather".
 
The nine former Wyevale stores delivered average sales growth of 37% against their performance under previous ownership in 2018, with some centres achieving nearly 60% sales growth, and they contributed significantly to EBITDA. They have all received investment and have seen good improvements in their profits and standards, added Blue Diamond.
 
In September, Blue Diamond completed the acquisition of seven further garden centres from Wyevale, including Bridgemere Garden Centre in Cheshire. These centres generated an EBITDA of £2.6m in 2018 and were bought for just over £7.5m, plus stock, fees and taxes.
 
Blue Diamond managing director Alan Roper said: “We see a significant opportunity to continue to grow profits in the short, medium and long term from a combination of driving trade in the core business, optimising the performance of the newly-acquired 16 former Wyevale centres and the further greenfield sites we have identified.”
 
Trading has remained positive since the end of June and the board is optimistic about the full year outcome.

The Group is privately owned but there is an active market in the trading of its shares - see https://www.bluediamond.gg/investor-relations


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