"Trading conditions remained challenging in the first quarter of the new financial year, with revenue down on forecast, reflecting ongoing macro-economic pressures that continue to weigh on consumer confidence resulting in lower footfall on the UK high street, alongside the highly adverse Government fiscal policies."
"The Government's November 2025 budget included an additional increase in the national living wage, raising our cost base further, with broader measures not materially improving consumer sentiment."
"Persistent inflation, higher interest rates and reduced disposable income contributed to negative economic and consumer sentiment in the UK. Sales were good when there was a reason to buy, such as the warm summer and the back-to-school period, however discretionary spending remained subdued as consumers exercised greater caution in what they were spending money on."
Pre-tax profits fell by more than £3.3 million from £10.1 million the previous year. Trading is under pressure at the start of 2025/26 with revenue below forecast and earnings expected to fall further. The company attributes rising operating costs to the government's November 2025 budget, including an additional national living wage increase that raised the cost base. Persistent inflation, higher interest rates and reduced disposable income have weakened consumer confidence and decreased footfall on the UK high street. Sales improved during specific events such as warm weather and back-to-school, but discretionary spending remained subdued as consumers exercised greater caution.
Read at London Business News | Londonlovesbusiness.com
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