Sales surged past the £100m mark at fashion brand Seasalt but profits were slashed, according to heavily delayed accounts.
The Cornwall-headquartered business has just published its results for the year to January 28, 2023, more than six months after the Companies House deadline.
According to the new filing, Seasalt’s turnover increased from £96.4m to £118.8m in the year while its pre-tax profits were cut from £5.3m to £470,681.
Seasalt’s accounts for the year to January 31, 2024, are due to be filed with Companies House by the end of October.
Cost rises hit Seasalt’s margins
A statement signed off by the board said: “The impact of our success with growing sales has been somewhat reduced by challenges with product margin during the year.
“This was mainly a result of inbound freight and container rates rising significantly.
“It has been pleasing to see those rates fall back in recent months to the pre-Covid levels.
“To help offset the impact of lower product margins we undertook a comprehensive review of our cost base and operating processes to identify opportunities to make better use of automation and to improve efficiency and effectiveness.”
Seasalt to focus on international growth
Seasalt’s UK turnover increased from £90.7m to £111.1m while its sales in Europe went from £4.m to £5.6m. In the rest of the world, its turnover rose from £1.4m to £2.1m.
During the year the average number of people employed by Seasalt increased from 1,029 to 1,194.
On its future, Seasalt added: “The directors believe prospects for the group continue to be very strong with further potential leverage in its investment in people, systems and infrastructure to raise its national profile through increased online sales, store sales via existing stores and planned new stores and expanded relationships with strategic third-party marketplaces.
“The group will also focus more resources on growing international through the same channels.”