Home Estate Planning Record pay day for Timpson family as group ‘far exceeds expectations’

Record pay day for Timpson family as group ‘far exceeds expectations’

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The Timpson family paid themselves the largest dividend in the group’s recent history after its financial performance “far exceeded our expectations”.

The family, which founded the group in 1865, received an interim dividend of over £16.6m, up from £12.8m in the prior year, in the 12 months to September 30, 2023.

The bumper pay rise comes after the Manchester-headquartered group’s turnover increased from £297.5m to £332.2m in the year.

Its pre-tax profits slightly slipped back from the record £40.2m in the prior year to £38.3m, the newly-filed accounts with Companies House also show.

Timpson’s brands also include Max Spielmann, Johnsons The Cleaners, Snappy Snaps, Jeeves of Belgravia and The Watch Lab.

The Timpson brand itself has 1,330 shops across the country, with 480 on the high street and 850 connected to supermarkets.

During the year, the average number of people employed by the Timpson group increased from 4,164 to 4,484.

A statement signed off by the board said: “It’s been a very good year and we have far exceeded our expectations.

“The before tax profit of £38.3m, from sales of £332m, got close to last year’s record which had the significant benefit of an extra 53rd trading week.

“To put our performance in perspective our profit is 87 per cent better than the last full year before Covid.

“This has been achieved without any of the financial support we received during lockdown and despite a period of inflation which has, in particular, substantially increased our patrol and energy costs.”

Timpson added: “Our dry cleaning business, through Johnsons and Morrisons, faced big increased in energy costs and was short of last year’s profit.

“But most of the damage was done in the first half of the year and we start our new financial year with dry cleaning and laundry sales rising rapidly. The addition of key cutting, watch repairs and photo processing is starting to bear fruit.”

The group includes six branches in Ireland, three pubs as well as a French hotel, bar and restaurant.

The results come after Timpson rescued watch and jewellery repairer In-Time, which collapsed in the days running up to Christmas 2022.

The company acquired 35 shops and took on 110 new employees.

In Time, which had its head office in Southport, has been trading since 1981 and had previously operated around 50 branches.

Timpson said: “It has been a heavy year for capital expenditure with substantial acquisitions, new shops and refits, but we have kept an eagle eye on the cash (which now earns us an attractive interest rate), so we have enough resources for future expansion and reinvestment in the existing estate of over 2,000 shops.”

On its future, the group added: “Our continued optimism, despite economic uncertainty, is shown by our continued high level of investment in new shops and store refits.

“Our presence in out-of-town supermarket sites has played, and will continue to play, an important part in our future.”

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