LK Bennett “moving swiftly” despite £3m loss

LK Bennett
The CVA last year was caused by the announcement of a second UK lockdown in the autumn
// LK Bennett turnover reaches £41.1m in the year to February 2020
// Gross profit reached £23.8m
// The retailer made an operating loss of £3m

LK Bennett has posted its latest results which cover the 12 months to February last year, and said it remains confident despite losses.

The retailer, which had its CVA approved by its creditors in December, achieved turnover of £41.1 million during the period.

Gross profit reached £23.8 million with a gross margin percentage of 57.9 per cent.

READ MORE: LK Bennett to shut stores as creditors approve CVA

However, EBITDA after exceptional items added up to a loss of £600,000.

The group reported an operating loss of £3 million excluding £1.4 million of largely positive exceptional items.

These exceptionals were the creation of the new company and the stock margin gain from the purchase of the assets – but net losses for the company were £2.3 million.

LK Bennett said the lockdown that began in March last year meant all of its stores had to shut temporarily, but it sourced a loan through Byland Investments in the same month and so was able to continue trading.

It improved its ecommerce platform and has worked with new partners this year, but said that only a certain amount of lost sales were made up through the online channel, causing an unspecified drop in turnover this year.

The company has also been offering more relaxed clothing in its SS21 range in response to changing consumer behaviour and continues to adjust its collections “where necessary”.

The CVA last year was caused by the announcement of a second UK lockdown in the autumn.

In the results, the company acknowledged that it has faced multiple challenges in recent years given the administration filing and the CVA.

However, LK Bennett said it is “moving swiftly to ensure that the brand is seen as highly regarded with high standards and excellent quality”.

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