Dobbies' profits drain away after drenched summer
Published: 2 December 2013
Last year's sodden summer washed away over 30% of Dobbies' profits, the company said as it released its annual results.
The Tesco-owned garden centre operator saw pre-tax profit slide 30.6% in the year to February 24 2013, from £10.5m to £7.3m, although turnover nudged up 0.8% from £136.4m to £137.4m.
"The garden centre market was impacted by the adverse weather in the year under review, with the summer of 2012 being the wettest on record for 100 years," said Dobbies.
It said it had reacted to this by continuing to diversify and differentiate its product range. The recent opening of a fresh fish counter, in the Braehead, near Glasgow, garden centre is one of the latest ideas Dobbies is trialling in order to set itself apart.
It also ramped up its promotional activity, which saw gross margin slip from 51.3% to 49.9%.
The company continued to invest in central systems and resources and new stores. In October it opened in conjunction with Tesco in Inverness, and last month it unveiled plans for its first new-build venture with Tesco, in East Kilbride. Dobbies now has 65 garden centres.
The year also saw the departure of finance director Sharon Brown and managing director James Barnes, who was replaced by Notcutts' former chief executive Andy King.