The company operating Cotswold Outdoor has not seen pre-tax profits for a decade, though it has substantially narrowed losses in 2024 as per recent confirmations.
The Wiltshire -based retailer disclosed a pre-tax loss reduction to £380,000 for the latest financial year, down significantly from a £7.3m loss reported in 2023, as reported by City AM.
Notably, the last time the Cotswold Outdoor's parent company recorded a pre-tax profit was in 2015, amounting to £14.8m, coinciding with a revenue of £135.5m.
Newly filed accounts at Companies House reveal that the firm experienced a slight decrease in turnover from £159.7m to £158.9m in 2024.
Accumulating pre-tax losses exceeding £110m since its last profitable year, the business - incorporating brands such as Runners Need and Snow and Rock - is under the ownership of Paris-headquartered PAI Partners following its acquisition of AS Adventure Group in 2015.
Cotswold Outdoor 'well placed' despite losses
Reflective of the current economic climate, a directors’ report stated: "The retail landscape in the UK throughout 2024 has continued to be impacted by the wider macro-economic and geopolitical environments which have continued to evolve and continues to be significantly impacted by the Russian invasion of Ukraine in February 2022."
Further exacerbating the situation, Cotswold Outdoor noted: "The increases in employer's National Insurance and National Living Wage will also increase payroll costs for the company, which will look to be offset through improvements in productivity."
"Despite these challenging trading conditions, like-for-like sales have marginally declined."
"The business has continued to manage cash and working capital very tightly, whilst at the same time investing in the store estate with two new stores opening in Ambleside and Beverley."
Cotswold Outdoor commented on its outlook: "2025 has started the year with a number of challenges in terms of macro-economic uncertainty, driven in particular by geopolitical issues and global tensions."
The company added: "As we continue to see inflation rise through the first months of 2025, it is still expected that interest rates will decrease through 2025."
Concluding with optimism, Cotswold Outdoor stated: "The company feels that it is well placed to tackle these challenges and continue to explore new business opportunities."
