Gillies of Broughty Ferry increased its sales by £500,000 last year despite “challenging” trading conditions.
The home furnishings retailer —which has stores in Broughty Ferry, Aberdeen, Perth and Inverness as well as a clearance store in Montrose — invested heavily in store refurbishments and additional staff training.
Turnover rose by 2.8% to £18.1 million for the year ending August 31.
Pre-tax profits dipped from £1.25m in 2017 to £1.02m last year.
Gross margin fell from 50.1% to 49.8% which the long-established family firm said reflected increased supplier prices and a competitive marketplace.
A statement from the firm said: “Additional costs were borne this year with the introduction of a training programme for staff, a successful project to de-risk the company’s final salary scheme pension fund and store refurbishments works.
“Otherwise costs generally were under control.
“The directors are satisfied with the outcome achieved.”
Retention of profits within the business led to an increase in the net assets on the company’s balance sheet from £18.3m in 2017 to £18.6m last year.
Managing director Ian Philp said the financial year was one of “challenging” trading conditions.
He added: “The political uncertainties of Brexit continued to create uncertainty throughout the 2018 year as they continue to do so in 2019.
“The company has a small but experienced management team who are supported by a team of over 180 valued staff.
“It is only with hard work and passion that the company is able to deliver a high quality offering to its customers keeping the business at the forefront as the prime house furnishers in the north and north east of Scotland.”
The company, which has been owned by the same family since 1895, will reach the milestone of 125 years of trading next year.
Mr Philp added: “As it approaches that milestone the business is financially strong, with a committed team at its heart and is well placed to deliver the first class service that existing and new customers deserve.”
rmclaren@thecourier.co.uk