Ryman, Boux Avenue & Robert Dyas Christmas Trading & Financial Statements for year ended March 2012
Highlights:
Like for like increases for Christmas trading; Ryman 2%, Robert Dyas 14.7% and Boux Avenue 79.4%.
New retail concept Boux Avenue expanded to 17 stores in the UK and 3 International stores. Trading in line with business plan to generate profits for the year ending March 2015.
Robert Dyas acquired in July 2012 makes immediate impact in trading and profits.
No bank debt in any of the businesses with cash balances held on balance sheets.
Christmas Trading:
The results cover the period from 1 November to Christmas eve.
Trading at Ryman, Robert Dyas and Boux Avenue, the retail businesses owned by entrepreneur Theo Paphitis, over the Christmas period was positive for all three businesses.
Ryman which has 237 stores nationwide registered a like for like increase of 1.1% in store and 2% when including on-line. Theo has owned Ryman since 1995.
Robert Dyas, purchased in July 2012, saw a double digit like for like increase of 12.9% in stores and 14.7% when including on-line. Robert Dyas has 96 stores mainly in the south.
Boux Avenue which he launched in April 2011, saw the 7 stores enjoying their second Christmas rattle up a like for like increase of 54.3% and 79.4% when including on-line. Boux Avenue now has 17 stores in UK shopping centres and 3 overseas franchise stores. The 17 UK stores and on-line showed a 182% increase over the comparable period last year.
Theo Paphitis comment:
In what is a challenging Retail and economic environment, I am delighted that all 3 of my retail businesses delivered a positive performance over the crucial Christmas Period. The businesses are obviously at different stages of development under my ownership so I am delighted to see them all make good ground both in store and online this year.
The focus for 2013 will include expanding Boux Avenue further in the UK and overseas, continuing the positive work at Robert Dyas both in store and online, as well as building on the consistent performance that Ryman has delivered over the last 15 years for me. It is exciting to be involved with a newly created brand like Boux Avenue and at the same time have two heritage brands like Ryman (120 years old) and Robert Dyas (140 years old), trading in the High Street, Shopping Centres and On-line.
I will continue to invest in a sector that has always thrilled me, seeking other opportunities and further continue to expand my existing retail brands. With no bank borrowing in any of the businesses and substantial cash deposits we are in the envious position of setting our own agenda and strategy for the long term benefit of our colleagues, customers and the businesses.
Financial Statements Year ended 31 March 2012:
Ryman Limited
Operating Profit for the trading business for the year to 31 March 2012 was marginally ahead of 2011 at £7.04m v £7.00m. This was an increase from £6.2m in 2010. Like for like sales at +0.7%.
Note 1: Profit before tax for Ryman Limited of £14.4m for 2012 includes a dividend of £7.2m from subsidiary and is not comparable with 2011 profit before tax of £7.2m.
Note 2: Ryman Group Limited - parent company for Ryman Limited and property investment.
Boux Avenue Limited
The business as a concept was launched in April 2010 and started trading in April 2011 with its first 6 stores and a website. The year ended 31 March 2012 represents Boux Avenue's first year of trading with a total of 8 stores.
Operating loss of £8m on turnover of £6.9m is in line with expectations for first year of trading. The investment has been made to establish a world-wide lingerie retail brand selling its own designed and manufactured product which now has 17 stores and a first class website in the UK and 3 stores overseas. The business has now created over 500 new retail jobs in its first 18 months of trading.
2013 plan is to see UK stores increased to 25 and a further 10 overseas. The UK website is already seeing more than threefold increase on the launch year.
Boux Avenue expected to be profitable in year ended March 2015. Investment to establish brand made by Theo Paphitis from own resources and will be over £30m.
As mentioned above, Christmas trading for 2012 was very encouraging seeing like for like growth of over 50% for its first 7 stores. Growth is expected to continue into 2013 as the stores mature and the brand increases its presence in the UK and overseas.
Robert Dyas
The financial statements for the year ended 31 March 2012 represent a period prior to Theo Paphitis purchasing the business in July 2012.
Operating profit for the year ended 31 March 2012 was £1.6m from £2.8m in 2011.
Trading since the acquisition has been excellent with Christmas seeing double digit like for like growth. Forecast for the financial year ending 31 March 2013 is for EBITDA to be over £4.5 million.
The business is now also free from bank debt.
Theo Paphitis comment:
I am pleased with the performance of all 3 retail businesses I own. At different stages of their lifecycle, all are performing in line with my expectations despite a difficult UK retail market. We will continue to focus on driving our established brands; Ryman and Robert Dyas, and nurturing Boux Avenue through the early stages of establishing and growing a brand worldwide. Whilst I expect 2013 to be every bit as challenging as the previous two years for the UK economy, I believe with the continued support of all my colleagues the businesses will continue to meet their plans. I look forward to exploring what retail has to offer both here in the UK and overseas. Investing my own funds allows me to implement strategies that are right for the long term, which continues to excite me.
Press release download: Ryman, Boux Avenue and Robert Dyas Christmas trading and financial statements for year ended March 2012 (PDF opens in a new window - right click to download)