17th Jul 2019 09:53
(Alliance News) - Newly-listed Watches of Switzerland Group PLC on Wednesday reported a near-trebling of annual profit, with revenue growth also strong.
Watches of Switzerland is a watch retailer, selling brands such as Rolex, Cartier, Omega, TAG Heuer, and Breitling.
For the 28 weeks to April 28, pretax profit surged to GBP20.1 million from GBP7.2 million, though including discontinued operations it slipped 70% to GBP1.9 million.
The firm's initial public offering, which saw Watches of Switzerland begin trading on the London Main Market in June, cost GBP5.9 million, while impairments also helped bring a significant increase in one-off costs.
Group revenue grew 23% to GBP773.5 million, with luxury watch revenue climbing 28% to GBP631.4 million. Like-for-like luxury jewellery sales were up 3%, with total like-for-like sales in the UK up 10% and in the US up 7.0%.
"I am delighted the group's five-year transformation has culminated in a successful initial public offering on the London Stock Exchange in June this year, and I would like to thank all our colleagues for their huge contribution to that achievement," said Chief Executive Brian Duffy.
"Financial 2019 has been a fantastic year for Watches of Switzerland Group. We have continued our trajectory of strong, profitable growth in our core markets of the UK and the US with an increase in sales of 23% during the year."
Looking ahead, the company said trading in the first eleven weeks of its new financial year has been "encouraging", and there is a strong pipeline of new projects. It has not changed any guidance given at the time of the IPO.
Watches of Switzerland wants GBP1 billion of revenue by financial 2021, and is targeting mid-single digit like-for-like sales growth in the UK and US between 2020 and 2022.
"Current trading remains encouraging, and we are confident of meeting the board's expectations for the financial year ending April 2020," said Duffy.
"We are the UK's leading luxury watch retailer, hold a growing position in the US market, and operate in a highly attractive market in which demand for luxury watches generally outstrips supply. We are well positioned to deliver on our strategy and look forward to achieving continued growth in the year ahead."
Shares were 1.5% higher on Wednesday morning at a price of 294.28 pence each, 9.0% higher than the firm's IPO price of 270p.
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