Sir Tom Hunter stalking fresh targets after cutting losses by half

Published on Thursday 4 February 2010 19:46

SIR Tom Hunter's business empire has more than halved its losses thanks to disposals and a recovering property market, and indicated that it is back on the acquisition trail.

• Sir Tom Hunter: Reduced debts largely through disposals. Picture: Donald MacLeod

Newly published accounts show that Hunter's main holding company made a pre-tax loss of 83.2 million in the year to 30 March, 2009. The figure is 56 per cent down on the 190m loss suffered the previous year.

West Coast Capital Holdings is one of the main investment vehicles of the Ayrshire businessman, covering his retail interests such as shoe chain Office, fashion retailer USC and stakes in House of Fraser, Flying Brands and Bhs. It also encompasses his various property investments and joint ventures through the WCC Investments subsidiary.

Hunter has been hit hard by the credit crunch, having invested heavily in the property market as prices peaked in 2007.

Since then, he has undertaken a series of write-offs and disposed of flagging retail businesses D2 and Qube.

A spokesman for WCC Holdings said the finances were "heading in the right direction", with overall net debt cut from 476m to 413m during the year.

"Losses are coming down, debt is coming down and asset values are going up," the spokesman said.

"We are comfortable with where we're at and the bank is very supportive."

Asked about expansion plans, he said the group was "certainly not saying no" to acquisitions, adding: "There are opportunities out there and we are cautiously keeping an eye on them.

"However, our main aim now is to sweat the significant asset base and grow the value in it."

Reports last year cited higher collective losses for West Coast Capital Trading and WCC Investments.

Both companies fall under the auspices of WCC Holdings, but the financial year-ends for the trading arm – which spans the retail interests – and the investments subsidiary vary, explaining the difference between the 190m and reported 253m shortfalls.

Separate, newly filed accounts for WCC Trading show turnover in the year to 31 January, 2009, fell from 283.5m to just below 210m. That followed the sale of the D2 fashion business in a management buyout in early 2008 and the disposal of the Qube footwear chain to JJB Sports.

D2 fell victim to the recession last year, and last month more than half of the stores were rescued from administration. Qube was placed in administration by JJB following a shake-up of its retail operations.

According to WCC Trading accounts, pre-tax losses were slashed from 150m to less than 40m.

Although Hunter does not sit on the board of either WCC Trading or WCC Holdings, he is chairman of parent partnership West Coast Capital and owns the majority of the business.

In December 2008, WCC-owned fashion chain USC fell into administration, but Hunter bought the bulk of it back – through new firm Dundonald Holdings.