Five-year plan boosts Liberty

By THIS IS MONEY
Updated:

 

Regent Street department store Liberty crept back into the black today, declaring a modest pre-tax profit of £152,000 for the full year against an £11.5 million loss last time.

However, the figure relied on a £2.4 million boost from the property division and exceptional credits from discontinued businesses. Group turnover for the 12 months to 30 January fell 4.7% to £58.8 million as sales in the retail and the Liberty brand division slowed.

Managing director Michele Jobling said Liberty had nevertheless turned the corner. She pointed out that the £3.18 million loss in retail was 26% less than last year.

"The important message is that we have a clear five-year strategy, including a refurbishment of the Tudor building and redesigning the Liberty brand."

In contrast to the £43 million redevelopment programme pursued by Liberty's previous board, five of who resigned at the beginning of 1998, its new management has approved a detailed £10 million revamp for the famous mock-Tudor, Victorian building.

The store hopes that new passenger lifts, air conditioning and better lighting will improve customer flow, especially on the hard-to-reach upper storeys. "We have a very good sales density on the lower floors," said Jobling.

The redevelopment will be funded by a £16 million, 15-year loan provided by Barclays Bank - part of £23 million of new facilities recently agreed with the store's traditional banker.

Liberty is hoping to increase the number of concessions offering its branded goods - including its newlylaunched ladies' range - in other department stores. Currently, only Harrods has a Liberty concession.

A mail-order book will appear in the autumn and there are plans to sell goods over the Internet.

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