Foyles returns to profit as it looks to open more stores
Bookseller Foyles has announced making a return to profit in the year to 30 June.
Turnover grew by 4.3% to £24.4 million while EBITDA was £397,053 compared to £356,433 in the previous year.
Gross profit edged up 0.6% to reflect a continuation of the underlying improvement of the business and tight control of costs after the relocation of the company’s flagship store in London’s Charing Cross Road.
Following the grand opening of the store in July 2014, the shop has seen a sales increase of almost 10% year-on-year.
The company said trading was also ahead of the previous year at Foyles’ branches in Westfield Stratford City, London Waterloo Station, Royal Festival Hall and Bristol Cabot Circus. Foyles has also opened a new branch at Grand Central shopping centre in Birmingham, above the newly refurbished New Street Station.
Paul Currie, chief executive of Foyles, said: “We have returned the business from being at a loss in a year of great change to a position of profit and stability. This has been achieved through careful cost control and smart operating processes, with thanks to our customers for their continued loyalty.
“Whilst this is an improvement on 2013/14, we are still challenged by low margins in a retail sector that has heavy costs of operations and low sales density. We continue to explore ways of ensuring the sustainability of the business, through initiatives such as the successful development of our digital delivery systems.”
Foyles financial director John Browne said the company is well placed to expand further as it looks to open new branches and said the company will continue to focus on developing staff. He added: “Development of staff and managers through coaching and a structured programme of in-house and external training will remain a focus for 2015-2016.”
