‘Exceptional trading’ continues at Leekes group
HOTEL to retail group Leekes has reported strong trading in the first half of its current financial year.
Leekes Retail and Leisure Group, the family-run business which has been operating for over 120 years, said its “excellent trading” reported in the year to 31 March 2018 had continued into the first half of the current financial year.
The Pontyclun-based group comprises a portfolio of Leekes home department stores together with the Vale Resort at Hensol.
The retail business built upon its expansion into England with the acquisition of Park Furnishers Bristol in 2016 whilst the Vale Resort has benefited from the investment in its wedding and event venue at Hensol Castle
The group achieved turnover of more than £85m in the year to 31 March 2018, which resulted in an Ebitda (earnings before interest, tax, depreciation and amortisation) of £4.3m and strong pre-tax profits.
Now in the first half of the 2018-19 financial year, it has seen a further improvement in group turnover and profits with the directors confirming it has already achieved last year’s Ebitda after just 8 months of trading.
Reflecting on the past year in the leisure sector, Stephen Leeke, managing director of the group’s Vale Resort in Hensol, said “We are delighted to report strong sales and profits for the Vale Resort with excellent levels of growth in bedroom and food and beverage revenues together with encouraging improvement in Resort membership numbers and spa business.
The growing popularity of the function and venue at Hensol Castle has been a substantial contributor to these results with over 160 weddings taking place at the Resort in the last year. We are also extremely pleased to continue to be the official hotel for both the Welsh national rugby and football teams.”
Emma Leeke, managing director of Leekes Retail, said “We are very pleased to post a great set of results in what has been a particularly challenging retail environment.
“Our trading in the first half of this year has also been exceptional with retail profits up substantially as a result of the excellent performance of our conservatory, window and door division as well as our fitted kitchen and bathroom departments.”
The group has an asset base of £70m, has, with the support of its bankers Barclays and Lloyds, been preparing the next stage of its expansion plans which includes the second phase of its development of Hensol Castle which sees the addition of twenty-nine bedrooms as well as an 80 cover restaurant.
Group chairman Gerald Leeke, said: “Leekes Retail & Leisure Group invests heavily in capital expenditure projects aimed at continuing to develop the business and provide additional income streams to further strengthen the business.
“We have also diversified into property development over recent years and are delighted that this policy of recycling and reinvesting our profits has helped ensure the group continues to trade strongly in an uncertain economic environment.”
Last year the group closed its Leekes store in Coventry.