Mountain Warehouse strong holiday sales

The discount outdoor retailer Mountain Warehouse saw December like-for-like sales rise 13.9 percent. The company, which sells outdoor clothing and equipment through over 30 stores across the UK , reported internet sales for the four weeks ended 31 December surged 97 percent, while like-for-like sales for the year to date (1 March to 31 December) gained 12.3 percent.

“Christmas started a little slowly but then got better and better,” said managing director Mark Neale. “In particular, sales of our great value skiwear were up over 30 percent this year. Gross margin is also substantially ahead – by approximately 5 percent – of 2005. We are extremely pleased with this performance which is a tribute to the whole team at Mountain Warehouse.”

Mountain Warehouse generates annual sales of approximately £17 million and is majority owned by NBGI Private Equity. Recently, the company has appointed BDO Stoy Haywood to investigate a possible exit for NBGI. According to Neale, NBGI had originally planned an investment period of three to five years. “NBGI are ready to capitalize on a very successful year. In the meantime, there has been plenty of interest from other private equity houses in a similar investment.” Other possibilities include a management buyout or a trade sale.

Established in 1997 with just one store, the company now operates 34 stores, including one in Austria and one in Ireland. The focus is on retail growth. “Our main competitor is Milletts, which operates 280 stores,” says Neale. “Obviously there is plenty of room for growth.”

www.mountainwarehouse.co.uk
8 January 2007

Jacob & Turner realises record profit

Scottish outdoor clothing manufacturer Jacob & Turner has announced its largest profit to date. The Glasgow-based company, owned by the Khushi brothers, reported a pre-tax profit of £11.4 million on a turnover of £40 million for the year ended 30 June 2005. The company's label, Trespass, was established in 1984 especially for the ski market, but has evolved into a general outdoor clothing brand. The company was founded in 1938 and was bought by its current owners in the 1960s. The brother Khushi are one of the UK 's richest Asians, with an estimated combined fortune of £75 million.

Since 2004, the company has spent more than £8 million on capital development and directors' pay was sharply reduced. In 2005, turnover dropped for the first time in at least a decade. Thanks to reduced expenses pre-tax profit was almost £900,000 more than the previous period. The final £7.8 million profit was transferred to reserves, which was then spent on capital expenditure.

www.trespass.co.uk
2 May 2006

Berghaus new management

The new managing director for the British outdoor clothing company Berghaus has indicated that he will continue the growth strategy of his predecessor.

Lewis Grundy, who was previously marketing and product director, follows in the footsteps of former managing director Tony Wood by forging ahead with the company's global expansion plans.
In the same wave of the management team restructure that saw Grundy appointed managing director of the company, Simon Roberts was appointed managing director for the company's UK operations. The position of managing director of Berghaus International has yet to be filled.

Berghaus employs a workforce of almost 100 people, most of whom work at the company headquarters in Sunderland, UK. The company has signed licensing and distribution agreements with parties in Australia and Korea and is now focusing on its presence in the Japanese and Asian markets.

www.berghaus.co.uk
21 December 2004