Retailer and supplier JML is to grow through its supply arm despite a profits jump in home shopping
The retailer’s pre-tax profits from its home shopping arm, which includes catalogue, online and home shopping channels, increased to £1.2m from £900,000 in its 2010 calendar year, despite a £2m dip in sales to £11.8m.
JML, famous for quirky products such as the Ped Egg, saved costs by closing one of its TV channels, which has been taken over by Argos TV.
JML managing director Ken Daly said: “We’ll always have TV but it’s not going to be a huge avenue for growth. To benefit from TV shopping you really need it to be live and have lots of content. Argos can do that.”
Total sales, including goods supplied to 6,000 UK stores, rose from £68m to £71m year on year. Group profit fell from £4m to £2.9m as JML invested in overseas launches.
Daly plans to boost sales by 20% to £85m this year through JML’s growing international business.
Overseas sales, which come from Holland, Germany and Singapore, reached £12.5m last year. Daly plans to grow that to £22m this year as it launches in Hong Kong and eastern Europe, where it already sells products in Tesco stores.
JML also aims to expand by opening international franchises.