HOUSE of Bruar, the food, homeware and clothing retailer dubbed the "Harrods of the North", posted a 30% drop in profits in the year leading up to its husband and wife owners putting the business up for sale.
However, writing in House of Bruar’s latest accounts, obtained by The Herald from Companies House, Patrick Birkbeck, the elder son of founders Mark and Linda Birkbeck, blamed the decline on “disruption caused by the construction of a menswear hall and excessive mail order costs”.
The Birkbecks last week put their Perthshire-based business up for sale as part of a strategic review, after announcing their retirement.
The couple added that the strategic review stressed the company would only be sold, “provided that a fair price reflecting the significance of The House of Bruar” could be agreed with a potential buyer.
The company, which has no debt, added: “If it is not, then the shareholders will pursue their other alternatives and retain their ownership of the company.
“The strategic review acknowledges the fact that in recent years a number of parties have expressed an interest to the owners in investing both in the site and brand, given the potential these offer for further development.”
It is understood that indicative offers of around £50m have previously been received.
A spokeswoman for the luxury retailer, which lures motorists off the A9 in the Highlands near Blair Atholl, declined to comment on whether there had been any recent progress on the sale or the number of interested parties.
Based on an 11-acre site, House of Bruar sells clothing brands including Barbour, Camel Active, Gant, Hackett, Timberland, North Face and its own label.
The Birkbecks founded the company with profits from selling high street chain Jumpers in 1992 to its management.
Meanwhile, the accounts reveal that pre-tax profits for the year to the end of January 2011 came in at £2.9 million, compared with £4.1m previously.
At the same time, turnover climbed to £18.6m, compared with £17.5m last time.
The accounts also show that directors’ remuneration rose to £116,452, compared with £105,380.
The directors passed on paying themselves a dividend, and shareholder funds rose to £20.8m.
Writing in the annual report, the company’s directors said: “During 2011, the company has experienced yet another year of growth in turnover ... despite the challenging economic environment and inevitable reduction in disposable income this brings.
“To maintain the pattern of annually increasing profitability, we have continued to invest in the business. In the year under review, we have built a new gentlemen’s clothing hall, which was opened in September, and we have continued to develop our mail order service.”
The directors added: “We are proud of these developments, and the commensurate increase in working capital required has been achieved while maintaining a debt-free position.”
Total staff numbers at House of Bruar rose to 181 from 160.
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