Barbour sales fall in pandemic year but company is strongly profitable
Barbour’s results for the year to the end of April showed that its revenues plunged during the period. But there was good news too as the company remains profitable and also said its performance showed the “strength and resilience” of its brands, as well as the long-term validity of the firm’s business model.
Turnover fell to £218 million from £242.8 million but operating profit actually rose to £36.1 million from £35.1 million. Pre-tax profit also rose to £36.3 million from £35.8 million. And net profit for the year was £27.9 million, down only slightly from the £28.9 million of the previous year.
Despite its profitability, the revenue drop shows that the firm’s three brands — Barbour, Barbour International and the slightly younger Barbour Beacon that was launched in 2018 — still suffered during the period as the pandemic rewrote the rules of shopping for clothing. The company said that margins were down as well.
It said its operating profit figure represented "a steady performance", as well as showing its financial resilience and ability to manage costs "closely and appropriately". And with impressive understatement it added that its balance sheet remains "relatively strong", with cash held in the business reducing to £95.4 million, although this was only slightly down on the £97.4 million of the previous year. This is important because it allows it to protect the things that matter like its customer service, it's long-term objectives and partnerships, as well as allowing it to invest for the future.
And the company is planning further investment in technology and sustainability because, despite the current uncertainty and market contraction, it's confident in the long-term growth of the business.
It sees huge opportunities around the world and said it continues to invest and grow in the European Economic Area, despite the challenges that Brexit has created.
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