Timpson profits surge ‘way beyond our expectations’
The end of the final Covid lockdown restrictions helped Timpson post profits “way beyond our expectations” in its record-breaking financial year.
The Manchester-headquartered company’s pre-tax profits totalled £40.64m in the 53 weeks to October 1, 2022, up from £24.53m in the year before.
The business also achieved a turnover of £297.4m, up from £212.2m over the same period.
Timpson is a family-owned group with brand that include Max Spielmann, Johnsons The Cleaners, Snappy Snaps, Jeeves of Belgravia and The Watch Lab.
During the year the average number of people employed by the group rose from 3,950 to 4,164. The increase comes after Timpson shed more than 800 jobs in its prior financial year.
A statement signed off by the board said: “Two and a half years after facing the daunting prospect of Covid, lockdowns and closed shops, I’m delighted that our latest financial year has been our best ever. Our profits of £40.7m are way beyond our expectations.
“Although the figures are flattered by a ’53rd week’ which brought in an extra £4.1m on a comparative basis, it is still a remarkable result achieved by a remarkable team.
“Particularly pleasing is the bounce back in our dry cleaning sales. As more people return to the office, go to parties, weddings and restaurants and dress up after two years in tracksuits and trainers we can see our dry cleaning offer, supported by a comprehensive network of service hubs, doing well in the coming year.
“Our photo business, Max Spielmann and Snappy Snaps, have also seen the benefits of life returning to normal. The weddings, parties and holidays have produced many more pictures to print and the return of overseas travel has led to record sales of passport photos.
“Our hospitality businesses have also been helped by the end of social distancing and a return of the social scene.”
However, Timpson said it is still waiting for a revival for its shoe repair business but added that watch repairs and key cutting “continue to grow”.
The company said: “Despite gloomy forecasts from retail experts, the high street has recovered most of the ground lost during lockdown and we are continuing to open at least 40 new Timpson pods a year, the majority in supermarket car parks.
“Our locksmiths, vending and online sales division, which we refer to as Timpson Direct, is starting to provide solid profits to the group.
“We emerged from lockdown with a new business model with many more shops run by a single colleague supported by stronger area teams.
“It is working well, despite recruitment difficulties in a period of low unemployment.”
On its future, Timpson added: “The directors expect the year ahead to be a challenge for the retail environment but our continued optimism, despite economic uncertainty, is shown by our continued high level of investment in new shops and store refits.”