Cornish fashion brand Seasalt Ltd is on a crest of a wave after seeing pre-tax profits soar to £2.5million.
The company, the 14 th fastest growing in Devon and Cornwall, reported turnover growth of 29% to £66million, thus becoming a success story at a time when the high street meltdown is claiming many victims in the fashion sector.
The company has now enjoyed a decade of 20% year-on-year sales growth.
Seasalt’s results, for the financial year ending February 2, 2019, showed operating profit was up £2.1million and before-tax profits hit £2.5million – more than six times higher than the 2018 total of £368,000.
Underlying EBITDA (earnings before interest, tax, depreciation and amortisation) was up 51% to £7million while gross profit margin improved 57%, compared with 55% a year earlier.
The business has been boosted by a wave of store openings and growth in its online division.
Seasalt wants to open an additional 40 stores in the next five years, including eight in the next year, having already added 10 stores since early 2018 in locations such as Belfast and Cambridge.
In addition, online sales jumped 35% with strong growth in Germany and the USA. There was a 21% hike in active online customers too, attracted by 12 collections over the year.
The company, renowned for its printed dresses inspired by Cornish artists and designers, stems from a single shop opened in Penzance by the Chadwick family in 1981.
That was when Don Chadwick moved from the Midlands and bought the outlet near the seafront in the Cornish port.
His sons Neil, Leigh and David later took control, launching Seasalt as a retail company in 2004.
There are now 68 Seasalt stores across the UK and it has opened additional warehouse space at its distribution centre in Redruth.
The company, headquartered in Falmouth, now employs about 1,000 people, 300 of them in Cornwall making it one of the Duchy’s most important private sector employers.
In 2018 Seasalt received £16million in investment from BGF (Business Growth Fund) and Santander, the first time the firm had accepted external finance. It is still family run, however.
Chief executive Paul Hayes said: “Staying close to our Cornish roots and culture drives the relationship we have with our customer and therefore results in this strong performance.
“Our ability to connect with customers in many different ways is underpinned by our continued investment in our business infrastructure, both online and in-store.”
Seastalt was named at number 14 in the Western Morning News’ Fast Growth 75 for 2019, leaping 13 places.
