Blackwell's reports fourth year of growth as sales rise despite pandemic

Blackwell’s has recorded its fourth consecutive year of sales growth despite the coronavirus pandemic, with turnover of £88.5m in the 18 months to 2nd January 2021.

Newly released figures at Companies House show the directors extended the reporting period by six months as the original year end of 3rd July 2020 “fell during a period of unprecedented global uncertainty” owing to Covid-19. The turnover in this period, up from £58.3m in the 12 months of 2019, represented an average monthly increase of 0.9% during a time when the retail shops were closed for the lockdown, which the report said was “quite an achievement in itself”. 

Gross profit for the period was £18.1m (2019: 12 months £13.3m). The loss on ordinary activities before taxation for the 18 months improved to £0.48m (2019 12 months: £0.85m), including £1.7m of receipts from the Covid-19 Coronavirus Job Retention Scheme through the period. However, £0.57m was spent in the period on exceptional redundancy and closure costs as the business took the decision to unwind nine of its shops during the lockdown period. 

Chief executive David Prescott told The Bookseller: “We are emerging from the most trying commercial circumstances in a generation, and doing so with a sense of optimism about the future. A number of factors have contributed to this state of affairs: the loyalty of our customers who want to see us succeed, the resilience and expertise of our booksellers who have performed outstandingly despite the tribulations of this last year and the support and collaboration of publishers and landlords who have worked with us in partnership to ensure our underlying business remains robust.  

“There is still much to do, but we hope and expect that the same spirit of resilience, warmth and expertise which have characterised the last 18 months will see us into ‘normal times’ and to future successes.” 

The retailer’s online performance was described as “exceptional” in mitigating the effects of lockdown closures, and students being off campus or unable to visit shops during the business’ key "Back to University" season. 

Redundancy costs for the year amounted to £388,000 (2019: £67,000) and the average number of people employed reduced slightly from 341 in 2019 to 328 in 2020.

In February this year, the business also received a £1m short-term loan from Julian Blackwell to provide further working capital. The loan is interest free and repayable by June 2022 or within three months of a trigger event.

The report concluded that it expects growth for the next period, adding: “While Blackwell’s still retains its excellent reputation as an academic bookseller, a broader customer base is strengthening the balance between academic and more general bookselling and the substantial growth in online sales demonstrates the company’s ability to be agile, adapt and thrive."