Lakeland have posted a 40 per cent drop in profits amid growing expansion costs and significant management remuneration.
The homeware retailer’s profits went down to £3.3 million compared to £5.5 million in the previous year.
This has been attributed to the costs of expanding its warehouse in Cumbria, acting as a significant drain on its margins.
Notably, there was also an increase of £500,000 in payouts to its management team, from £2.4 million to nearly £3 million.
Despite the sharp decline in profits, Lakeland’s sales were up 1.8 per cent to £178.8 million.
It says the popularity of the Great British Bake Off has had a positive effect on sales, being the latest store to cash in on the GBBO effect.
It now trades from over 60 outlets nationwide and has a growing presence in the Middle East, Germany, India and Australia.