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Laura Ashley sales and profit decline, announces sale of Singapore property

By Prachi Singh

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Business

Laura Ashley Holdings Plc in its full year results statement said that profit before tax and exceptional items reached 5.6 million pounds (7.2 million dollars) compared to 8.4 million pounds in 2017 (10.8 million dollars). Statutory profit before tax was 0.1 million pounds (0.13 million dollars) compared to 6.3 million pounds (8.1 million dollars) last year. The company added that total Group sales declined to 257.2 million pounds (332 million dollars) compared to 277 million pounds (357 million dollars) in 2017. The company also announced a conditional agreement to sell its Singapore property.

Commenting on the results, Tan Sri Dr Khoo Kay Peng, the company’s Chairman, said in a statement: “As set out at the time of the interim results, the trading environment for the 1st half of the year was challenging and the board expected these difficult trading conditions to continue into the second half of the year. This proved to be the case and, given the softer trading environment for the year ended June 30, 2018, we are disappointed to report a fall in profits.”

Laura Ashley’s fashion like for like sales rise 9.7 percent

Total like-for-like retail sales for the year were down 0.4 percent, while fashion like-for-like retail sales were up 9.7 percent. Laura Ashley said, online revenue, however increased to 59.7 million pounds (77 million dollars), which now represents 25 percent of retail revenue. Online sales were up 4.1 percent on a like-for-like basis.

Laura Ashley announces sale of property in Singapore

The company has also announced that it has entered into a conditional agreement to sell, through its wholly-owned subsidiary, Laura Ashley (Asia) Pte Ltd, its commercial property in Singapore to SB Investment Pte. Ltd for a cash consideration of 54.5 million Singapore dollars (39 million dollars).

Commenting on the transaction, Tan Sri Dr Khoo Kay Peng said: As announced separately today, we have accepted an offer, conditional on shareholder approval, to sell the freehold property in Singapore. Although the proposed sale has led to an impairment charge for the Group, on completion of the disposal, Group net debt will be significantly reduced and cash flow will be strengthened.”

Laura Ashley had 160 stores in its UK property portfolio as at June 30, 2018 and international business accounts for approximately 7 percent of total Group revenue. The company added that this property in Singapore was initially purchased with a view of having an Asian headquarters based there to help expand into the Asian market, including China and India. While expansion into the Asian market continues to be the Group’s strategy, the retail environment, both domestically and internationally, has changed and the Board believes that this is an appropriate time to dispose of the property in Singapore.

Picture:Laura Ashley website

Laura Ashley