Barbour has posted its results for the year to April 30th which show that it has begun to recover well from the impacts of the pandemic.
Turnover had risen by 31.5 per cent to reach £286.m, from £218m, with operating profit up to £40.3m but operating margin falling to 14.1 per cent.
Dame Margaret Barbour said that the results demonstrated the strength and resilience of its brands.
Commenting: “With uncertainty across global markets very high and competition for volatile demand remaining high, navigating profitably has been a challenge, with cost pressures intense and growing throughout the year.
“While operating profit increased by £4.2m, including exceptional income of £5.2m, the underlying profit remains heavily impacted by both the Covid-19 pandemic and Brexit, as cost and pricing pressures remain relentless across all markets globally. We are investing heavily in multiple areas to maintain service to our customers, in these uniquely difficult circumstances.
“Now more than ever our focus on overhead cost control is crucial, while we strive to deliver improved customer service complemented by engaging consumer campaigns building on the trust and brand equity we have with our consumers and their valued choices.”
Steve Buck, managing director added: “Despite the current global challenges, we are confident in our long-term growth strategy and have continued to invest in our people, systems and our service. South Shields has been home to the brand since 1894 and supporting and investing in the skills of our talented North East workforce remains paramount.
“During 2021/22, we invested significantly to protect customer service from the severe interruption and turmoil across the global supply chain as markets rebalanced supply and demand post Covid-19. In response to an increased demand by our customers for eCommerce and the requirement for structural changes to mitigate the negative impact of Brexit, we have invested further in technology and our digital capabilities.”
During the year, the business marked a hundred years of its re-waxing service. Now branded ‘Wax for Life’, this service which chimes strongly with the current shift to sustainability has been supported by a roll-out of Wax for Life stations with its key global partners.
Buck added: “The Barbour Foundation which supports charitable causes, health and scientific research programmes and women’s groups, primarily in the North-East, receives its generous funding from the shareholders dividend. Since its inception, The Foundation has donated over £27m to charitable causes and as well as supporting vital research work with organisations such as Newcastle University, also donated monies and products to the Red Cross to support their Ukraine appeal.
“The fiscal year 2022/23 will see some extraordinary challenges for our business with higher inflation, the cost of living crisis and market contractions but we remain confident that if we continue to remain financially prudent, invest intelligently and strategically for the future in our products, people and brands, we will navigate through these difficult times in a strong position.”