Furniture and homewares retailer Gillies of Broughty Ferry hailed a policy of reinvesting in its business after posting strong results despite continuing pressure on consumer spending.
The company’s total turnover from sites in Aberdeen, Broughty Ferry, Montrose and Perth topped £15 million during the year to the end of August, climbing by 5% on the previous period amid a challenging retail environment.
Profitability also increased, with the firm revealing that its “shrewd” buying and a resilient Aberdeen market had helped performance. Pre-tax returns climbed 28% in the year, to £1.4m.
The family business’ managing director Ian Philp said beginning of works on a £1.5m expansion of its Perth store due to be completed later this year had been a particular highlight.
He said directors were “very pleased” with the figure, and stressed that the policy of investing for the future of the business would continue. Mr Philp also reserved particular praise for the firm’s 136 staff.
“In particular we have strengthened our customer service and distribution centre, and placed a real emphasis on ensuring our sales teams are offering an excellent level of service,” he said of the period.
“We have invested significantly in improving our premises, with new low-energy lighting in all our stores, solar energy generation at our Broughty Ferry store and warehouse and, more recently, started work on a significant expansion of our Perth store.
“In addition, the buoyancy of the economy in Aberdeen has contributed to increased sales, and shrewd buying from all around the world has enabled us to offer absolute best value whilst also improving our margins.”
Mr Philip said the independent firm, which can trace its history back to 1895, continued to live up to its ‘Over 100 years of forward thinking’ marketing strapline.
“With our fifth generation of family now well established in the business we continue to look to the future and are well placed to trade successfully over the coming years,” he said.
The major extension to Gillies’ Perth store is now rapidly taking shape on the site of the city’s former British Legion club in Skinnergate.
The addition will increase the size of the outlet’s sales floor by 50%, allowing the creation of a new carpet and flooring department.
It will also see the addition of a restaurant in the existing building’s glass atrium, overlooking Perth Concert Hall.
Gillies says the new space will allow it to offer customers “an even larger choice”.
The firm’s accounts submission also records the retirement of former chairman and director Jack Philp early last year. He was replaced by Euan Webster.