Oliver Bonas: ‘Growth hard to come by’ with Reeves’ tax hikes
Oliver Bonas has warned the outlook for the UK economy is “not easy” and that “growth hard to come by” because of the tax rises introduced by Chancellor Rachel Reeves in her Autumn Budget last year.
The retailer added that its pre-tax profit fell during 2024 because of rising costs while it pins its hopes on the “government’s growth ambitions start[ing] to bear fruit” as the year progresses”.
The comments have been included in the latest set of financial accounts for Oliver Bonas which have just been filed with Companies House.
They show that the firm’s pre-tax profit declined from £8.6m to £7.8m in 2024 but that its revenue increased from £135.7m to £150.2m.
During the year Oliver Bonas opened seven new stores and relocated a further seven to larger premises.
Oliver Bonas, which is owned by Oliver Tress, also increased its dividend from £990,000 to £3.7m.
Oliver Bonas: ‘Outlook is not easy’
A statement signed off by the board said: “The economic backdrop in 2024 did not provide a favourable trading environment.
“We entered the year in a technical recession and exited 2024 with growth of 0.1 per cent over the preceding six months.
“Although disposable incomes rose, in many cases this at best returned some people to where they were prior to the cost-of-living crisis.
“In any event the savings ratio rose which indicated any extra income was being saved or used to pay down debt.
“For the year as a whole the company achieved flat-for-like sales which stemmed from tighter stock levels and therefore lower mark-down sales in the first half and positive like-for-like sales in the second half.”
Oliver Bonas added: “As a predominantly UK company, the company is influenced by the UK economy.
“The outlook is not easy with cost rises coming through but growth hard to come by.
“We have to hope that the government’s growth ambitions start to bear fruit as the year progresses.”