Warm, dry summer helps Klondyke to big uplift in operating profit for 2013

Klondyke has reported a 40 per cent increase in operating profits in the year to the end of September 2013.

Klondyke's Bob Hewitt (right)
Klondyke's Bob Hewitt (right)

Accounts recently filed at Companies House show turnover rose almost seven per cent from £44.1 million to £47.04 million in the 12-month period.

Operating profits were £4.9 million, ahead of the £3.5m recorded the previous year. Pre-tax profits fell from £3.4 million to £3.15m, but the 2012 figures were boosted by a £1.3 million gain from a disposal.

Like-for-like sales were up 5.6 per cent in the year.

Chief executive Bob Hewitt said sales were nine per cent up since September 2013 to the end of May 2014.

Klondyke said: "The financial year ending September 2013 will be remembered for the extremes of weather, in particular, unusually low temperatures in the early spring and one of the best summers for several years.

"Throughout the summer months consistently dry, warm weather had a positive effect on the sales of garden furniture and barbecues as customers returned to their gardens after recent poor summers.

"Sales of gift-related products also experienced good growth throughout the year and the increasing popularity of garden centre coffee shops and restaurants resulted in another year of solid like-for-like sales growth."

The accounts showed capital spending of more than £1 million, compared to £703,566 the previous year.

The directors added: "Following the success of recent redevelopments the board will continue to plan for the future redevelopment of other centres within the existing portfolio.

"The board will also give consideration to suitable potential acquisition opportunities that meet our financial criteria.

"The current economic climate will continue to be a challenge. However, there are some early, if small, signs of recovery."

Staff numbers are 860, payroll is £12.23m, directors remuneration is £721,490 with top pay of £219,647.

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