9 February, 2018
Revenue jump for Savile Row suit maker
The Nottingham-headquartered company behind the Savile Row-based clothing brand Chester Barrie, which also supplies a host of high street retailers, has reported a jump in revenue for its latest financial period after an acquisitive year.
Prominent (Europe) made £127.9m in revenue in the year to 31 March 2017, up from £115.1m in 2016.
The company was founded in 1993 and is a supplier to retailers in the UK, Spain, Italy and France including Marks & Spencer, Next, John Lewis, Moss Bros, Top Man and River Island. It also supplies products from Savile Row designer Richard James Mayfair and Barcelona-based Rushmore.
Chester Barrie, which was acquired by the group in 2007, was first established 75 years ago and has 20 retail outlets in UK and Europe department stores as well as wholesale distribution in the USA.
On 10 February 2017 the company acquired shirts business Quantum Clothing Group and Quantum Hosiery.
Prominent (Europe) made a decreased pre-tax profit of £1.3m during the year, down from £2.2m in 2016.
A statement signed off by the board said: “The significant increases have arisen from the acquired operations and the European entities, where increases of £5.3m were from a £2.9m impact from a 12.7 per cent movement in the GBP/Euro average exchange rate in the year and increased levels of business across Europe, particularly France.
“Order management control and sourcing continues to improve, but margins have been impacted in the year by exchange rate changes in GBP/USD following the Brexit decision, causing increased purchase costs resulting in a gross profit percentage of 6.5 per cent.
“The UK business faces challenges with regard to the retail environment and economic uncertainties but continues to progress particularly through good order management and this is expected to continue during the coming year.
“The European subsidiaries have developed in the past year and enter the new financial year with an encouraging order book position.
“Overall, we expect the coming year to again be challenging in the retail sector.
“However, we remain condiment that the current level of performance can be maintained in the future.”
The company also supplies to T M Lewin, House of Frazer, Ted Baker, Amazon and Austin Reed.
The products it supplies are sourced from manufacturing partners in Asia, including Cambodia, Vietnam, Bangladesh, China and India.