Moss Bros profits look much smarter
Tuesday 27 October 1992
Turnover at the menswear hire and retail group rose only marginally - by pounds 700,000 to pounds 23.95m - but the increase fed directly into operating profits as costs were held.
Terry Donovan, finance director, said that gross margins of more than 47 per cent on the extra sales fed straight through to the bottom line as a brake was put on overheads.
'We were determined not to sarifice margins to maintain sales,' he added. 'Allied to that, we've taken a rigorous approach to costs. For example, we review all vacancies in the group as they arise and look at the possibility of rationalisation.' Also, landlords were taking 'a more realistic view of rent reviews'.
Trading held up in the group's formal wear division, aided by the addition of eight shops that came with the acquisition of Dormie at the end of last year. Moss Bros now has 38 per cent of the hire market.
Although the group, which embraces such high street names as Cecil Gee, Suit Co and Savoy Taylors Guild, is sitting on an pounds 8.5m cash pile, Mr Donovan said there would be no rush for acquisitions.
'When the time is right, we will expand through organic growth, opening more outlets as consumer confidence picks up,' he said. 'We've got all the right ingredients to capitalise on the upturn when it comes.'
But trading remained flat at the moment. 'Clearly, Christmas and the New Year will be as important as ever but there is no sign of us coming out of recession. At one point, it looked like the North was more resilient but consumer confidence is pretty depressed in all geographical areas now.'
Earnings per share were 1.42p (0.41p) and the interim dividend was maintained at 1.5p. The shares closed unchanged at 120p.
David Stoddart, analyst at Strauss Turnbull, said he had increased his full-year profits forecast by pounds 100,000 to pounds 1.7m.
'It is not the most marketable of stocks but we think it is a long- term hold.'
- 1 'Kidnapped boy may have been abused and murdered by VIP paedophile ring,' say police
- 2 Ridley Scott on Exodus, Gods and Kings casting: 'I'm not going to get it financed if my lead actor is Mohammad so-and-so from such-and-such'
- 3 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 4 This letter from a reader explains why women can’t play football
- 5 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Black Friday 2014: Opening times for Asda, John Lewis, PC World, GAME and Argos
Miss Honduras Maria Jose Alvarado's stylist Luis Alfredo Garcia is found stabbed to death
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Scientists predict green energy revolution after incredible new graphene discoveries
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
Negotiable: h2 Recruit Ltd: A rapidly expanding, global Software/ SaaS Vendor ...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£16000 - £18000 per annum: Langley James : IT Support; Helpdesk, VMware; Manch...
£35000 - £450000 per annum + £3k car, £70k ote: h2 Recruit Ltd: Do you want to...