Peacocks owner Edinburgh Woollen Mill posts record profits

The group, which bought value fashion chain Peacocks in January and young fashion retailer Jane Norman in June 2011, also delivered a 25.5% surge in turnover to £245.7m, despite a slightly negative like-for-like sales performance in the Edinburgh Woollen Mill chain.

Sales were driven by the acquisitions while it also opened 18 Edinburgh Woollen Mill stores, its premium knitwear business, in the period.

In documents filed at Companies House, EWM group said: “The group achieved an acceptable financial performance over the past year which, given the many challenges impacting retail at this time, is not an insignificant achievement.”

The group said the weakening of sterling, volatility of the Eurozone and increases in raw materials costs and higher fuel costs had placed pressure on retailers, driving input costs up “dramatically”.

It said “many actions have been taken in order to compensate for these substantial cost increases, with a good degree of success as evidenced by the continuing level of satisfactory profit levels”.

Edinburgh Woollen Mill Group also owns Duvetco, which trades as home textile business Ponden Home from 89 stores, and golf specialist Proquip.

EWM said Ponden Home “continues to create a niche” and expects it to grow “across the country”.

By year-end fashion retailer Jane Norman operated from 154 stores, including franchises and Peacocks trades from 388 stores.

The Edinburgh Woollen Mill chain totalled 372 stores by year-end and in separate documents filed at Companies House posted pretax profit up 16.7% to £24.7m. Sales also edged up 0.8% £162m. The chain has driven sales through growing its online business and expanding across the Republic of Ireland.

EWM said it is focusing on key actions to ensure a “high quality shopping experience” across the group, including improving the Jane Norman supply chain and product offer and ensure products across the group are value for money.

The retailer is also eyeing reopening Peacocks stores which had been closed by its administrator.