Despite a rise in revenue, Castore reports a significant financial loss for the fiscal year ending 4 February 2024.
- The company’s turnover increased markedly from £115m to £190.3m, yet resulted in a pre-tax loss of £28.8m.
- Exceptional costs totaling over £24.4m, including warehouse consolidation and stock provisions, heavily impacted profits.
- Despite operational challenges, management remains confident in future efficiency improvements.
- Sales increased across the UK, Europe, and internationally, despite the financial setback.
Despite achieving a notable increase in revenue, Castore, supported by Sir Andy Murray and the Issa brothers, has reported a significant pre-tax loss of £28.8 million for the fiscal year ending on 4 February 2024. This represents a downturn from the previous year’s profit of £14.6 million. Castore’s financial records, submitted to Companies House, indicate that while turnover surged from £115 million to £190.3 million, the company was unable to avoid substantial financial losses.
Castore’s financial woes are largely attributed to exceptional costs totaling over £24.4 million during the year. Key expenses included £2.1 million for warehouse consolidation, £9 million for stock provision, £6.3 million related to fundraising, and £3.8 million covering onerous contracts. These extraordinary costs significantly diminished operating profits, which plummeted from £16.5 million to a mere £399,148.
The company undertook strategic initiatives to enhance its supply chain efficiency, consolidating various UK warehouses. While this strategy posed significant challenges, leading to disruptions in operations and customer experiences, management took temporary measures, such as increasing staffing and reducing promotional activities, to mitigate adverse effects. Additionally, Castore incurred further costs to fulfil customer orders and experienced a notable write-off due to stock missing the ideal clearance window.
Despite the setbacks, company management remains optimistic about future performance improvements, citing resolved short-term issues. The workforce expanded from 399 to 517 employees over the year. Moreover, Castore reported increased sales figures, with UK turnover rising from £79.8 million to £106.1 million, European sales up from £25.3 million to £59.6 million, and international sales climbing from £6.6 million to £20.1 million.
Castore faces substantial financial challenges but shows promise for future growth and operational refinement.
