Laura Ashley hit by 70pc profits dive

FLORAL furnishings retailer Laura Ashley has blamed the pound’s slide since the EU referendum and a raft of store closures for its profits nosediving by more than 70pc.

Profits at the firm, which is more than 50pc owned by Khoo Kay Peng, the Malaysian-chinese businessman, tumbled from £22.8m to £6.3m for the year to June 30. The slump in profits was exacerbated by a move in accounting periods, which meant that the previous financial year was 74 weeks.

Mr Khoo said: “Trading conditions have been challenging for the year.”

Laura Ashley UK’S likefor-like retail sales were down 3.1pc, while total sales fell from £400.9m to £277m during the year.

The retailer was partly hit by the closure of 22 concessions in Homebase stores following the DIY chain’s takeover by Wesfarmers last year.

Sean Anglim, chief financial and operating officer, said the biggest hit to the business had been from the sharp fall in the pound’s value since June last year.

About a third of Laura Ashley’s products are made in the UK, though the bulk are manufactured in Asia and Turkey. Shares closed down 4pc at 8.46p.