After publishing financial results for the year ending 5th March 2023, Dobbies Garden Centres Group Limited has revealed that the group had experienced extremely difficult trading conditions during its last financial accounting period. It blamed unseasonal weather in the peak Spring/Summer period, which was exacerbated by macro-economic head winds stemming from the war in Ukraine, inflation, and the cost-of-living crisis.

Despite this, the Group generated sales of £278.7m albeit margins were adversely impacted. Consequently, the business states that it sustained a net loss of £5.2m. 

A spokesperson for Dobbies told GTN Xtra: "The “net loss” of £5.2m referred to represents the Underlying Operating Loss of £34.4m (as per the Consolidated Income Statement on p17 of the Report and Accounts) before non-cash Depreciation & Amortisation charges of £29.2m per Note 7 of the accounts (p40).

"This excludes other non-cash expenses including an impairment charge and non-recurring finance costs relating to debt which has now been converted to equity as part of our recapitalisation in March 2023."

Turnover for the year dropped to £278.7m from 303.6m the previous year with an operating loss of £69.6m vs an £18.9m operating profit previously.

Finance costs were £60.8m in the year ending March 5th 2023, up by £20m on the previous reporting period.

The report includes the following statement about future developments:

"The Group continues to differentiate its retail experience and evolve its hospitality offering accordingly. As the UK's leading garden centre retailer, we are committed to strengthening this position through further investment in our existing estate and the development of new opportunities. The below elements underpin our growth strategy: 

•    Further development and acquisitions in strategic locations, including new-build developments;
•    Continued roll out of "little dobbies" stores;
•    Strengthen customer engagement through focus on NPS and enhancements to our loyalty· scheme;
•    Continuing to ensure that sustainability remains at the core of our business; and
•    Becoming a digitally led garden centre retailer."

Dobbies was acquired and successfully refinanced by funds managed by Ares Management, its largest shareholder, in February 2023, eliminating debt and interest whilst providing a new working capital facility. The group moved to a net assets position of £53.8m (27 February 2022: net liabilities of £84.1m). As a result Dobbies believes it now has a significantly improved foundation and is firmly on the road to recovery. 

Dobbies has 77 stores across the UK, employs 3,800 colleagues and has welcomed over 23 million customers in the year to date.

Read the full report and accounts here