Loss-making G101 Off Sales to expand retail section despite slipping into red
King’s sister Natalie, 51, and mother Cynthia, 73, are still directors of the business, which was formed in 1972.
“During the year under review the directors sought to expand the company’s retail operations through the ongoing investment and refurbishment of its shop portfolio together with the relentless review of the variety of goods being made available to customers,” the directors said in their report.
They added that they were pleased to see retail sales from their shops climb £500,000, and blamed falling wholesale sales for the overall decline in turnover.
“The directors plan to continue the policy of expansion in the retail market rather than the wholesale market which, as expected, saw a decline in turnover in the year under review which resulted in an overall reduction in annual turnover.”
The directors added they were satisfied with the overall trading position of the company, which had continued to achieve its target gross profit margin. The gross margin rose 2.5 per cent from 15.22 per cent in 2014 to 15.6 per cent last year.
At the year end the company was involved in a dispute with HM Revenue andCustomsforthesumof £807,985, which was being legally challenged.
“Whilst it is too early to predict the outcome, the directors are very positive of a favourable outcome for the company,” the annual accounts state.
Staff costs rose 4 per cent to £5.7m. The company employed 428 staff in 2015.