Textile fibre trade disposal and retail specialist The Davy Group has posted a mixed bag of results as cuts within its retail side of the business contributes to a return to profit.
Total revenues for the year ended 30 June 2015 rose by 1.7% to £11.7m from £11.5m in 2014, with its merchant sector providing a 10% growth in sales to £5.4m.
However, despite the overall positivity, within Davy’s retail arm, sales fell by 5% to £6.2m due to ‘very difficult trading on the high street’.
Ilkley-based Davy Group said that its retail side has managed to cut their annual loss significantly with ‘stringent cost cutting’ and ‘negotiating cuts in store rentals’. Davy confirmed that one of its retail stores, which is not performing, will be ‘disposed of’ as it streamlines its operations.
Stated within its filed accounts, gross profit saw a slight decline of 2.7% to £3.5m from £3.6m last year, while overall profit returned into the black at £29,981, compared to its loss of £98,850 in 2014.
Looking ahead the company revealed that the upcoming EU referendum would impose a potential risk to performance, indicating: “A vote to leave the EU would have a temporary effect on trade due to uncertainty in the market.”