Monsoon profits up, worried on outlook

Fashion chain Monsoon has voiced concern about the possible impact of the London terror attacks on business despite posting a…

Fashion chain Monsoon has voiced concern about the possible impact of the London terror attacks on business despite posting a 34 per cent rise in annual profits to £59.1 million.

During the year, total sales increased by 34 per cent to £363.7 million, and pre-tax profits after exceptional items rose 20 per cent to £53.1 million.

But the group, which also owns Accessorize, said it was worried about the recent bombings and the "general prediction of the lack of consumer confidence on the high street".

But despite the "uncertain" outlook, Monsoon said it had made an encouraging start to its new financial year.

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Like-for-like sales, stripping out the effect of store openings and closures, were 16 per cent higher in the seven weeks to July 16th - including the week after the July 7th attacks. This compared with an 11 per cent increase during the year to May 28th.

Monsoon said strong summer ranges had contributed to an excellent start to the year.

The company revealed on Friday that its founder and chairman was in talks about a possible bid to take the company private. It said Mr Peter Simon was at the early stage of discussions to buy the 24.6 per cent stake he and his family do not own.

Monsoon boosted its trading space by 30 per cent when it bought 47 former Etam sites in April. This will increase the number of Monsoon and Accessorize outlets in Britain and Ireland to around 380 once the stores have been converted.