Rubicon, which owns Principles and Warehouse, has posted a surge in operating profit for the first year since its management buy-out from Arcadia.
Operating profit for the year to August 30, 2003 rose to£18.1 million from£9.9 million a year earlier. Turnover climbed 10.3 per cent to£232 million, while profit before tax and exceptionals came to£16.4 million. There is no comparative pre-tax figure.
Formed in October 2001 as a vehicle for the MBO, Rubicon gained full ownership of the Warehouse, Principles and Hawkshead brands on August 31, 2002, after selling Racing Green to Speciality Retail Group in July 2002. In March 2003, Rubicon completed the sale of Hawkshead to Retail Variations.
Rubicon chief executive Peter Davies said the financial performance of Principles was stronger than Warehouse: 'Principles had more capacity to develop when we bought it. It was underperforming. Warehouse, on the other hand, was already doing well.' He added that Rubicon's strong performance overall was driven by 'great product and better customer service'.
Plans for 2004 include a celebrity campaign for Principles' spring/summer range, following the success of using Minnie Driver last autumn. Davies said there was capacity for more shops, but no targets had been set.
Net debt at the end of August 2003 was£9 million compared with£10.9 million at the end of August 2002. This follows capital investment of£7 million and the payment of£10.5 million for Arcadia's minority shareholding.
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