Financial statements for The Garden Centre Group’s first year’s trading under Terra Firma ownership offer strong clues about the group’s direction and development priorities.

Catering and concession income are high on the agenda, following their contributions to the full-year results for 2012, which saw sales decline 6 per cent on a like-for-like basis to £259.2 million but gross margin grow by 0.3 per cent to 49.7 per cent. Terra Firma’s ownership, via the Trellis Capital vehicle through which TGCG is run, ran from April 2012, the last eight months of the full period.

In his statement, Trellis Capital’s chairman, Stephen Murphy, says that in a challenging year, the group outperformed the industry trend through “decisive action and strong cost control”.

Restaurant sales were up 12.5% and concession income up 11% over 2011. Trading, Murphy said, was was mixed, with some positive signs, including a good Christmas trading period, buit it was not not enough to counter the adverse weather impact in the main spring trading period.

Murphy mentions the “steady stream of income” from restaurants and concessions, regardless of the weather – a signal that the £2 million investment in restaurant expansion and new children’s soft play areas in 2012 is likely to continue across the group, as part of efforts to “weatherproof” their centres.

A further £2.2 million was spent on other development projects, including new concession space. Work is currently nearing completion way on a large development at Bicester Avenue. “Weather-proofing”

The group’s Gardening Club grew its membership from 1.9 million to 2.2 million during the year. Murphy said the scheme “remains a key part of the strategy for building relationships with our customers” and offered potential for greater returns.

Murphy re-iterated the company’s commitment to organic growth. “We are keen to acquire strategic assets… where the terms are attractive”. A number of targeted projects were under way to identify further opportunities..