Gillies of Broughty Ferry has experienced another “difficult” year of trading with a fall of more than £1 million in both sales and profits.
The company has a long history in Dundee – going all the way back to 1895, when cabinetmaker and upholsterer James Gillies set out on his business journey.
In addition to its flagship Ferry store, it has outlets in Perth, Aberdeen, Inverness and Dingwall as well as owning Grampian Furnishers in Elgin.
Newly filed accounts for the year ending August 31, 2024, show sales fell to £23.3m from £24.6m in 2023. Pre-tax profits dropped from £2.1m to £1.1m in the same period.
The firm said tightening household budgets had impacted on “big ticket” sales.
Gillies of Broughty Ferry says cost-of-living pressures behind profits drop
Gillies closed its Montrose store in March last year after 13 years in the Angus town. At the time it said rising costs were behind the decision.
The firm, which has around 200 staff, also described its 2023 financial year as “difficult” when profits fell by £800,000 from £2.9m in 2022.
Commenting on the latest financial results, the company said: “The trading environment remained difficult throughout the year, with ongoing cost-of-living pressures and subdued consumer confidence continuing to impact sales.
“In addition, the company faced inflationary challenges, particularly in relation to payroll costs.
“Despite these challenges, the day-to-day involvement of the directors enabled the company to adapt quickly to changing circumstances, particularly supplier price inflation.
“Operational discipline and a continued focus on efficiency helped protect core areas of the business, although reduced revenues inevitably affected profitability.”
New MD on financial challenges
Gillies recently announced the retirement of its managing director Ian Philp, who served more than 25 years in that role.
He oversaw the expansion of the business from two to five stores.
Tom Rodgers, who has served as the firm’s finance director for nine years, is the new managing director.
He said there were signs of improvement in the new financial year.
He said: “Consumer confidence has been low, making 2024 another difficult year for the business.
“Trading in the current financial year has improved with booked business showing an increase year on year.
“Keeping pace with cost inflation remains an ongoing issue for the business.
“However, with a sound financial base and a talented team of people, we are well placed to deal with the challenges that we face.”
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