The Wiltshire-based owner of Cotswold Outdoor, along with brands like Runners Need and Snow and Rock, has reported ongoing financial losses.
- In 2023, the company faced a pre-tax loss of £7.3m, following a £3.9m loss in 2022.
- Since their last profit of £14.8m in 2015, the company’s pre-tax losses have totalled over £110m.
- The turnover showed a slight decline from £160.5m to £159.7m according to the latest accounts filed.
- The company’s strategic outlook remains optimistic despite ongoing economic challenges.
The Wiltshire-headquartered retailer, which incorporates prominent brands such as Cotswold Outdoor, Runners Need, and Snow and Rock, continues to endure financial setbacks. In 2023, the firm reported a pre-tax loss of £7.3m, whereas the previous year saw a loss of £3.9m. This financial downturn has persisted since the company last achieved a pre-tax profit in 2015, amounting to £14.8m with a reported turnover of £135.5m.
Over the past decade, the cumulative pre-tax losses have escalated beyond £110m. The most recent filings at Companies House indicate a slight reduction in turnover, from £160.5m to £159.7m. This trend underscores a challenging financial trajectory for the retailer amidst a turbulent economic landscape.
According to a board-approved statement, the UK’s retail sector in 2023 was significantly affected by broader macroeconomic and geopolitical factors. The Russian invasion of Ukraine in February 2022 notably disrupted the global economy, precipitating increased inflation. In response, the Bank of England implemented substantial interest rate hikes to manage inflationary pressures. Despite a moderation in inflation in 2023, consumer confidence remained largely unaffected, contributing to the retailer’s financial difficulties.
The company has articulated a strategic outlook that reflects a cautious optimism. Although the easing inflation is expected to prompt a reduction in interest rates in 2024, the extent remains uncertain. Nevertheless, the directors express confidence in the company’s strategy, highlighting its agility and resilience in navigating forthcoming challenges.
Despite the economic uncertainties, there is a positive projection towards consumer behaviour. As inflation eases and with an anticipated resurgence in consumer confidence, the company remains hopeful of a revival in consumer interest, particularly with the ongoing trend of engaging in sustainable outdoor activities.
The Wiltshire-based retailer is cautiously optimistic about overcoming financial challenges amidst improving economic conditions.
