However, sales from existing customers rose 3.5 per cent on the previous year. The group said it was encouraged by an increase in internet sales and expected web sales to continue to rise.
Group profit before tax and exceptional items rose 14 per cent to£52.1 million. The group also operates an educational supplies division, which achieved a 40 per cent sales increase for the year.
Chairman Keith Chapman said: 'The company has enjoyed another record year. This was achieved despite the challenging retail environment that our home shopping division experienced last autumn.'
The group has appointed Patrick Jolly as chief executive. Jolly has been a non-executive director of the company for the past five years and is an experienced corporate finance lawyer.
Philip Maudsley has been named chief operating officer. Maudsley joined the retailer in 1987 and has been an executive director since April 2004, having been managing director of the home shopping division for the previous 10 years.
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