Foyles flops back into the red as business rates hit earnings

Foyles racked up losses of £88,791 in the 12 months to June 30, 2017, compared with pre-tax profits of more than £131,000 the previous year.

Last year’s business rates revaluation added £70,000 to Foyles’ running costs.

Meanwhile it generated sales of £26.6m – up 6.4%.

The sales rise came despite terrorist attacks in London and Manchester impacting footfall and flood damage forcing the retailer to close its London flagship during a vital trading week.

Foyles chief executive Paul Currie said: “As a London-centric business, the impact of heightened security issues last year, plus the increase in business rates, have in the short term impacted us.

“We did, however, enjoy our best trading performance at Christmas in the history of the company, giving us comfort that there is continuing strength in traditional book retailing, in what is a very competitive marketplace.”

The 115-year-old chain also made some significant strategic changes during the period, including ramping up in-store service and making efficiencies to its logistics and procurement processes.

“Much of this investment we have made will take full effect in the current and subsequent years,” Currie insisted.

Three years ago, the firm reported losses in excess of £600,000.