Scottish garden centres chain flags restaurant investments

The Herald Scotland

3 days ago

Consolidated profit before tax fell to £6.6m, from £8.2m in the prior financial year.
The directors say in their strategic report on the accounts: 'The main cost contributing to the decrease in profit before tax was the increase in wage costs. All other overheads are reviewed and controlled on an ongoing basis.'
Wages and salaries increased to £22.2m in the year to September 2024, from £19.5m in the prior 12 months. The average monthly number of staff employed during the year rose to 950 in the 12 months to September 2024, from 895 in the prior financial year.
The directors declare: 'Although the current retail market is not positive, garden centre retailing is more focussed on lifestyle rather than ambition and we are confident that, as long as the weather is favourable, customers will still choose to visit our stores.
'Restaurant and food hall sales are continuing to be strong and with renewed focus and investment in these areas we will see additional footfall and turnover. We have a wonderful team of staff in the centres who give fantastic service to our customers, and this is one of the key strengths in the group.'
The directors flag the importance of weather to trading.
They say: 'Weather is the single biggest external influence to seasonal garden retailing and is the main factor that can greatly affect trade. Our investment in better facilities leads to consumers being able to shop in our stores no matter what the weather, and the enhanced product offer makes us less reliant on just the sales of core garden products and plants.
'Our relationship with our suppliers also ensures that we have product available when demand is high and get preferential treatment when stock is in short supply.'
Commenting on the financial year to September 2024, the directors observe that 'turnover in the first trading quarter started well with restaurants especially strong and, overall, we were ahead of the previous year at the end of December [2023].'
The directors note 'overall catering had a good second quarter to the end of March [2024] and garden centre trade was also ahead'.
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They add: 'The period from Easter to the end of June [2024] saw very little in the way of settled weather or indeed sunshine and this impacted on the sales of all gardening categories, especially bedding plants and outdoor leisure. The only glimmer of positivity was the early May bank holiday where a brief period of good weather resulted in our best-ever trading week for the group. Restaurant trade held up particularly well over the spring and summer months, indoor categories like gifts and food also held up well for the period.
'A selection of gardening products also sold well over the summer such as slug pellets, tools, paving and aggregates and weedkillers showing customers were still spending time in their gardens.'
The directors report the quarter from the end of June until the end of September last year 'was better with good plant sales, especially roses and summer flowering herbaceous'.
They add: 'Our annual rose festival in June was well attended and saw good sales of roses and related products and gifts. Food continued to sell well over the summer and restaurants again were busy. The better weather towards the end of the trading year reinforced the impact of weather on turnover and showed that customers still want to visit garden centres when the weather is right.'
They describe the 12 months to September 2024, overall, as 'another great trading year'.
The directors flag restaurant refurbishments at Inverness and at Byrkley Park at Burton upon Trent between January and March 2024.
They say: 'Once again, we finished the year strong and ended up with another great trading year for the group. Continued Investment in the business has helped improve the facilities to ensure customers return. The two restaurant developments show this with both showing a good increase in sales once reopened, in both the coffee shops and the garden centre.'
Commenting on the outlook, the directors declare: 'The board of directors continue to be very supportive of the group's redevelopment and refurbishment programme and we are always looking at ways to improve the business going forward.'