Pre-tax profits at Blue Diamond, the UK’s third biggest garden centre group, rose 26% from £6.6m to £8.5m in 2016.
The group says sales, which increased 10% (8% like-for-like) to £91m, could reach £100m for the current year. The group is aiming to double current turnover to £180m over the next five years.
The group’s portfolio grew from 17 to 19 outlets during the year, following the acquisitions of Harlow and Coton Orchard, with a 20th due to be announced shortly and start trading towards the end of the year. MD Alan Roper says the new-build store will be targeting turnover of £10m. Two more potential new builds are in the pipeline.
The growth strategy will combine expansion of existing sites, acquisitions and new centres on green field sites. Roper says he expects a turnover growth rate of at least £10m a year to continue.
The group announced a final dividend of 18p, bringing the year total to 26.5, up 10.4% on 2015.
Group chairman Simon Burke (right) said the new trading year had started strongly. “We have not yet seen any significant impact on customer demand from the Brexit process or the resumption of retail price inflation,” he said.
He said the company was keen to encourage its employees to become shareholders.
Alan Roper added: “I believe that Blue Diamond’s consistent growth has come because we are successful in exploiting the opportunities of an increasingly broader non-gardening offer that the modern garden centre now conveys, whilst continuing to remain credible and authoritative in our core gardening offer. This is in contrast to the concession-led and relatively undifferentiated offer that is prevalent in most of the sector. Recent upheavals elsewhere in the industry are testament to the challenges of keeping pace with a changing market.”
