Coronavirus has ‘made Loaf a better business’ says founder after profits rise
The pandemic has made Loaf a better business, according to founder Charlie Marshall.
Marshall says coronavirus has strengthened the bonds between staff at the online and eight store retailer.
‘The directors believe that the events around Covid-19 have strengthened bonds and made Loaf a better business in the face of adversity. There will no doubt be challenges ahead, but also enormous opportunities, and the directors would like to thank everyone in the company for helping achieve these results,’ he writes in the company’s latest accounts.
His comments came after pre-tax profits rose from £2.6m to £3.3m in the year to 31 March as sales rose from £48m to £51m.
Cash reserves rose by £3.9m to £20.4m. The company has proposed a dividend of £4m, up from £250,000 in the previous two years.
Marshall says the results ‘reflect the realisation of operational efficiencies, overhead cost management and a continued focus on developing a strong brand message and desirable products.
‘During the final month of the financial year, the Covld-19 pandemic caused significant disruption to the supply chain·(including customer deliveries), the temporary closure of all stores, the transition of all company staff to remote working and the temporary closure of the head office.
‘Since the end of the financial year the Covid-19 pandemic intensified in the UK. Sales were very adversely affected in the initial period; but the easing of Government lockdown measures has enabled a good recovery. This rebound is in no small part down to the decision to maintain the company's marketing spend during lockdown which the directors saw as a time of opportunity, as well as one of great uncertainty and concern.’