Clintons back in profit after closing stores and cutting over 300 jobs
Clintons has surged back into the black after closing more stores and cutting over 300 jobs.
The gift card giant has posted a pre-tax profit of £8m for the year to 29 June, 2024, according to new accounts filed with Companies House.
The total comes after Clintons made a pre-tax loss of £5.3m in the prior 12 months.
That loss was its first since it reported a pre-tax loss of £16.9m in the year ending November 2020.
The accounts also show that Clintons cut its headcount from 1,757 to 1,415 in the year as it reduced its store estate to around 170.
Turnover at Clintons, which was bought by Pillarbox Designs in March 2024, reduced in the year from £96.5m to £82.6m.
National minimum wage rise hits Clintons
A statement signed off by the board said: “Sales totalled £82.6m for the period and the directors feel this is a satisfactory performance, given the circumstances.
“The company has continued to close loss-making stores and the portfolio of retail stores is now down to approximately 170 stores.
“Sales growth continues to be a challenge and the location of stores remains key to achieving this.
“The high street continues to be unpredictable and the company is seeing reduced footfall in the stores year on year.
“The company continues to monitor performance of the existing estate and to close the poor performing stores, which whilst impacting on turnover should improve profitability moving forwards.”
Clintons added: “During the year the company entered into a restructuring plan that removed certain liabilities and reduced the level of business rates paid to March 2024.
“This had a significant impact on the profitability levels of the company for the year.”
Clintons also said: “Like many other retailers, the company continues to face significant cost pressure on wages given the increases in the national minimum wage.
“Conversely, energy costs for the business began to ease during the year with the deal in October 2023 representing a material saving compared to the deal for the prior year.”