In accounts filed at Companies House, the retailer – run by Rob Cissell – said that trading conditions have been challenging for the past two years, with high street and local shopping centre traffic significantly down. Total sales fell 1 per cent to£104 million during the period, with EBITDA also dropping to£5.9 million, compared with£6.5 million the previous year.
Sales of garden centre products were affected last year by drought conditions across much of the Southeast. The retailer said: “Although costs were well controlled, fixed costs of operating stores – particularly occupation costs – cannot be adjusted downward in proportion to the sales decline, hence a greater percentage decline in EBITDA.”
Verdict chairman Richard Hyman said: “Robert Dyas is a solid business run by an experienced management team. It is successful in maintaining interest from consumers.
“However, it has been hit by the negative environment in the homewares market. People are not spending as much on home-related products.”
Hyman added that overall trading in the home market has been poor, with retailers from DIY to furniture being hit. He said: “The home market is under severe pressure.”
The retailer said that its short-term goal is to resume growth in EBITDA by increasing sales in existing stores and investing in new standalone stores and concessions.
A Robert Dyas spokesman said: “Last year was a year of repositioning for the business and we are very happy with trading in the run-up to Christmas.”
No comments yet