THE GARDEN MARKET SUPPLEMENT 2018 DOBBIES: NEW OWNERSHIP
The Numbers Sales £m
Gross profi t £m
12/13 13/14 14/15 15/16 16/17 %change 137.4 142.0 152.9 153.7 151.0 68.6 70.5 77.0 76.9 74.4
-1.8 -3.3
Operating profi t £k 7,272 6,645 -48,338 11,998 607 -94.9 Pre-tax profi t £k Staff
Salaries £m
The Ratios Stockturn
Gross margin %
7,282 6,655 -48,371 14,515 8,402 -42.1 2,851 2,845 2,804 2,766 2,789 34.2 35.1 37.7 38.0 38.3
3.4 4.2 4.2 4.1
Operating margin % 5.3 Net margin %
5.3 4.2
49.9 49.6 4.7 4.7
Staff costs/turnover % 24.9 24.7 Return on capital % DIY Week index
3.8
50.4 50.0 49.2 0.0 7.8 0.0 9.4
24.7 24.7 25.4 0.0 9.9
12.0 52.8 -1435.0 17.7 -2.9 DIYWK-20JUL18-Riverco_Layout 1 19/07/2018 12:09 Page 1
Dobbies, the UK’s second largest garden centre chain, changed hands in July 2016, when Tesco sold the business to a group of investors led by Midlothian Capital Partners and Hattington Capital for £218m. The new holding company, DanAtAugusta Bidco, was speedily re-named Dobbies Garden Centre Group Ltd. The latest accounts refl ect only a few months under the new owners, but show that there was consistent sales growth up to 16/17, with steadily improving stockturn, excellent gross margin, and very competitive staff costs. The colossal operating loss in 14/15 was attributed to impairment of fi xed assets, presumably as part of Tesco readying the business for sale. CEO Nicholas Marshall left in the summer, after months of media speculation about his position in the business.
-2.7 -1.5
Benchmark
FROSTS: NOW RETAIL FOCUSED The Numbers
Sales £m Gross profi t £m 9.1
12/13 13/14 14/15 15/16 16/17 %change 30.6 31.1 28.2 19.0 19.4 11.7 12.5 12.3
9.1
2.1 0.2
0.8 0.8
12/13 13/14 14/15 15/16 16/17 %change 3.0
0.4 -94.9 5.6 -41.1 2.6
5.6 -43.9
Operating profi t £k 573 718 502 147 129 -12.2 Pre-tax profi t £k Staff
Salaries £m
The Ratios Stockturn
Gross margin %
498 692 508 143 2,118 1381.1 486 505 543 208 237 8.9
9.3 5.6 9.1 4.5 1.6
1.8 1.8
6.9 5.1 5.4 4.3 4.7 0.8 0.7 8.4
13.9 4.7
12/13 13/14 14/15 15/16 16/17 %change 6.5
Operating margin % 1.9 Net margin %
38.1 40.1 43.6 47.8 46.9 2.3 2.2
Staff costs/turnover % 29.1 29.9 32.4 27.1 27.7 Return on capital % 7.6 DIY Week index
9.9 -65.9 21.9 -76.5 -108.7 6.6
The sudden and substantial drop in sales at Frosts a couple of years ago was attributable to a reorganisation of the business: the landscaping division was spun off as a separate company instead of functioning as a subsidiary of the garden centre business. Since then, the indicators have been positive: a modest rise in sales, a signifi cant improvement in stockturn, and a useful gain in productivity as well, with staff costs dropping from more than 32% of turnover to under 28%. The latest development was at the end of July this year, when fi ve directors left the board and one new one was appointed – we will have to wait for the next set of accounts to see what eff ect this has had on the company’s sales, costs and trading ratios.
-1.9 -14.1
0.8 10.9 1350.4 2.5
3.3 48.0 1350.6
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www.diyweek.net
Tel: 01538 528360 Email:
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DIY WEEK GARDEN MARKET SUPPLEMENT 17
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