10th Apr 2015 14:01
LONDON (Alliance News) - Laura Ashley Holdings PLC Friday reported a rise in profit after revenue benefitted from online growth and improved home accessory sales, but the company cut its dividend.
The home furnishings, clothes and flower retailer reported a rise in pretax profit to GBP22.9 million in the year ended January 31, compared to a GBP19.3 million profit the year earlier, after revenue rose to GBP303.6 million from GBP294.5 million, representing a 3.1% rise in sales.
Of total sales, home accessory sales climbed 3.5% during the year, but decorating sales fell by 1.5%, fashion sales dropped 2.8% and furniture sales decreased by 0.3%. Revenue from the Manor hotel grew by 37% in the year, and Laura Ashley opened up The Belsfield hotel which has so far been "well recieved", it said.
Laura Ashley said it also experienced 8.6% growth from its online business after the company made enhancements to its digital platform.
"I am particularly pleased with our strong online growth and the enhancements made to our digital platform. This gives us the ability to showcase our distinctive products and bring our iconic British brand to a broader, worldwide consumer base," said Chairman Tan Sri Khoo.
However, despite the rise in earnings, Laura Ashley slashed its dividend from the 3.5 pence per share paid last year. The company has proposed an final dividend of 1.0p, which makes the total dividend for the year 2.0p. The company said it will review dividends on the basis of annual profitability, the economic climate and the needs of the business.
In the first two months of the current financial year, the company said it has seen like-for-like sales growth of 3.0%, and Laura Ashley said it is encouraged by the growth and believes it can maintain this for the foreseeable future.
"We are optimistic that the growth of recent years will continue as we develop, grow and improve our product ranges and optimise our business model. The strength and appeal of our brand, allied to the enduring loyalty of our many worldwide customers, gives us confidence for future growth," said Khoo.
Laura Ashley shares were up 2.6% to 30.00 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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