British lifestyle and fashion brand Oliver Bonas has seen profits surge by 150% in the 13 month period to December 31.
The retailer reported £5.2mn pre-tax operating profits for 2015 compared with £2.2m in the previous financial year, which was a 12 month period. Total sales increased 28% £42.6m and a £3.2m dividend will be paid, up from £683,309 in 2014.
Like-for-like sales were up by 14% in 2015, with the company crediting this rise in fortunes to the soaring popularity of its in-house designs and increased staff motivation following its adoption of the living wage.
62% of all Oliver Bonas’ 2015 sales were of own-brand fashion, accessories, homewares, gifts and furniture, compared with 54% in 2014.
Last year the company became the first high street retailer to pay a voluntary living wage of £7.85 per hour and £9.15 per hour in London, compared to the compulsory national living wage of £7.20 per hour.
The retailer said that whilst there had been considerable shore term costs involved in implementing the wage rise, overall it would lead to better staff retention, which in turn would support stronger sales.
2015 was also a great year for store openings, with nine new Oliver Bonas outlets opening up compared with 2 closures, giving the retailer a portfolio of 57 stores around the UK. The company also said its website has made a ‘meaningful contribution’ to its stellar results.
Whilst the company acknowledges there are now Brexit-related rises in the price of supplies, which are mainly bought in dollars, it also expects the weakened Sterling to stimulate overseas sales and attract more tourists to its British stores.
