// Hobbs posts £3.8m operating loss due to £18.9m costs relating to change of ownership
// Annual turnover up 20%
// Loss after tax also plummets to £4.8m
Hobbs has revealed that the corporate sale of the brand prompted it to swing to an operating loss in its last financial year, despite a significant rise in annual turnover.
The upmarket womenswear retailer posted an operating loss of £3.8 million for the 14-month period ending March 31 last year, after it was slugged with £18.9 million worth of administrative costs that came with being bought out by new owners.
This compares to an operating profit of £800,000 in the year prior.
However, adjusted operating profit – without the exceptional items factored in – fell 5.9 per cent year-on-year to £2.5 million.
In addition, turnover surged 20.8 per cent to £132.6 million.
Meanwhile, loss after tax came in at £4.8 million compared to a net profit of £500,000 the year prior.
Hobbs’ former parent company Hobbs Fashion Holdings was sold to TFG London – a subsidiary of The Foschini Group – in November 2017.
As a result, the retailer changed its financial year to bring it in line with reporting of its new parent company.
Hobbs also confirmed that chief executive Meg Lustman will step down this month and Justin Hampshire will now join the company as managing director.