New stores keep profits growing for Dobbies

GARDEN centre chain Dobbies has shrugged off the effects of "difficult" winter trading to carve out a modest rise in full-year profits, thanks in part to new stores.

Newly filed accounts show that the Lasswade-based group booked a pre-tax profit of just over 9.9 million in the 52 weeks to the end of February, up from 9.7m the year before.

As revealed in May by The Scotsman's sister publication, Scotland on Sunday, turnover grew by 8 per cent to 112m, helped by the full-year impact of outlets opened the previous year as well as more recent launches including Lisburn in Northern Ireland and Braehead, Glasgow.

Stripping out the new branches, sales dipped 0.8 per cent "reflecting a difficult winter trading period". Gross margins rose from 50.9 per cent to 51.5 per cent.

Founded by James Dobbie in Renfrew in 1865, the company was acquired three years ago by Tesco following a takeover tussle with retail entrepreneur Sir Tom Hunter, but remains independently run. Its head office has been located on the outskirts of Edinburgh for the past 77 years.

A 50m growth burst has resulted in the opening of five centres in the past year or so, taking the store count to 29 and creating some 600 jobs, including about 400 in Scotland.

Writing in the annual report, the directors said: "It is anticipated that additional new sites will contribute to future growth with planning permission having been obtained to build stores in Carlisle, Liverpool and Peterborough."

As per 2009-10, no dividend will be paid for the year.

The accounts showed the headcount, including part-time staff, rising by more than 200 to 2,273. Total staffing costs, including directors, came in at 27.5m, up from 24.7m. The highest-paid director received 276,000, down from 317,000.