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Birmingham Post
Birmingham Post
Business
Jonathon Manning

Frank's the Flooring Store owner sees turnover jump by £3m as sales soar

The owner of Frank's the Flooring Store saw sales jump by £3m last year after the company shook off worries about Brexit to boast huge sales.

Darlington's CreativeCity Limited, which owns Frank's, saw its sales jump from £27.8m in 2019 to £30.9m for the year ending July 31, 2020.

The business, which operates 29 stores around the North East, said it had managed to increase its sales despite the challenges of Brexit and the impact of Covid-19.

In financial accounts, the company said: "2019/20 was another good year in a challenging economic climate (Covid-19 and Brexit). Although gross profit margin has decreased slightly, sales turnover has increased with the previous year.

"Continued investment in training has helped us to develop our people skills and management tools to improve our operational efficiencies, actions which have worked extremely well and to which we are confident that we will see continued future benefits.

"The environment in which the company operates is expected to remain extremely competitive throughout 2020/21, with some uncertainty over the evolution of exchange rates and the UK economy."

Despite the increased turnover, CreativeCity saw its operating profit fall during the year, from £1.14m to £1.0m.

But while operating profit dipped slightly, the group's profit after tax trebled from £1.13m to £3.5m.

The substantial increase in profit came about after the business's assets were revalued to the tune of £2.5m.

CreativeCity also grew its headcount during the year from 103 members of staff to 113. The company added three members of staff to its administration team, bringing the division to 20 people in total. Meanwhile, the retail team grew by seven to 93.

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