In the landmark 100th year of Belstaff, the brand sets the tone by filing annual accounts, revealing a mix of triumphs and hurdles. As the brand navigates its centennial celebration, both positive and challenging aspects emerge.
Addressing challenges first, the accounts highlight Belstaff’s dependence on INEOS, owned by billionaire Sir Jim Ratcliffe. Acknowledging a «material uncertainty» about its continuity, the brand seeks additional «financial support» with no formal agreement in place. INEOS, a consistent supporter since 2017, remains crucial in navigating uncertainties.
On a positive note, the accounts for the full year to December 2022 unveil a significant 18.9% increase in turnover, reaching £59.7 million. Robust growth extends across business segments, including wholesale and retail stores. Gross profit stands at £11.8 million, a commendable rise from £8.7 million the previous year.
However, operating losses widened to £14.2 million due to a £15.5 million movement in exchange differences related to inter-company loan revaluation. Pre-tax and net losses expanded to £28.8 million from £16.6 million. Despite this, underlying EBITDA, excluding exchange differences, paints a more optimistic picture, with losses narrowing from £11.3 million to £5.8 million.
Belstaff’s strategic focus centers on bolstering revenue and profitability, starting with a renewed emphasis on brand image and heritage. This involves a refreshed visual identity, new product categories, and innovative technical fabrics.
The brand introduces a modern retail concept at its Regent Street Flagship in London, offering a contemporary take on Belstaff’s motoring heritage. Ongoing refurbishments align the existing store portfolio with the new design, while strategic opportunities in relevant locations are actively pursued.
Belstaff actively monitors its wholesale customer portfolio, ensuring strong brand partnerships that align with its image. The objective is to enhance market awareness and maximize returns, embodying a commitment to sustained growth during its centennial milestone.