Shoe retailer Charles Clinkard is striding back into the black after months of lockdown closures knocked the company’s profits.
The Middlesbrough-based shoe seller, which was first established 95 years ago through one store in the town, now has more than 40 shops and concessions across the UK, employing more than 480 people and reaching customers around the UK and overseas through its website.
The company has now published accounts for the year ended January 30, showing a 39% fall in turnover from £39.3m to £23.9m as three lockdowns took its toll on sales.
The previous year’s operating profit of £1.34m fell to a loss of £2.43m and the overall loss for the year was £2.13m, down from the previous year’s profit of £938,000.
Online sales chalked up through the pandemic helped Charles Clinkard to navigate the Covid-19 crisis, but group finance director Jonathan Mankin highlighted challenging times in the accounts.
However, the company said that the balance sheet remained strong, with net assets of £8.6m at the end of the year, benefiting from the drawdown of a £2m CBILS loan and careful stock management throughout the year.
In the company accounts, Mr Mankin said: “Whilst our online sales stood up robustly in challenging times, closure of shops for long periods due to Covid-19 meant that total turnover in the year fell to £23.9m (£39.3m). The loss before tax was £2.5m (2020: profit of £1.3m), after charging additional dilapidation and onerous lease provisions of £1m.
“Despite the welcome receipt of furlough and other grant income from the UK government in the amount of £2 5m, cash outflow from operating activities amounted to £2.4m.
“Since the year end the shops have reopened, online sales remain strong, and in the first five months of the new financial year the group has returned to profitability.
“The directors are confident that the group will remain profitable for the rest of the financial year despite the ongoing challenges of the pandemic and of retail generally.”
During lockdown the company took time to invest in its portfolio, carrying out a £250,000 revamp at its Newcastle store in Eldon Square, which was opened when lockdown eased in April.
Since then, the company has also announced a partnership with Durham’s Hand Dyed Shoe Co, opening a special concession within its Leeds store.
Following publication of the accounts, Mr Mankin added: “The loss was the result of the shops being closed for long periods due to Covid 19 and charging additional dilapidation and onerous lease provisions.
“Since year end the shops have reopened, and nine months into the new financial year the group has returned to profit. The group is operating comfortably within its borrowing facilities and at the end of September has cash at bank of £4.2m.”
