CLOTHING company Lyle & Scott has reported falling profits and turnover due to reduced sales in Europe and the UK.
According to accounts at Companies House, turnover dipped 6% from £34.3 mil-lion to £32.1m, while pre-tax profits declined from £7.5m to £4.7m in the 12 months to March 31, 2012.
UK income for the firm, which has a facility in Selkirk, slipped from £22.7m to £21.3m while European turnover fell from £11.2m to £9.9m. Sales from the rest of the world, however, almost trebled from £304,000 to £869,495.
Margins dropped from 52.4% to 45.1% due to higher raw material costs and currency movements in foreign exchange markets.
Although traditionally associated with golf, the brand has become more fashionable in recent years, with bands such as Kasabian, Kaiser Chiefs and Arctic Monkeys often spotted wearing the golden eagle logo.
Writing in the accounts, owner Sue Watson, an accountant and textiles investor, said: "The ongoing economic challenges within Europe impacted on the wholesale side of the business but the multi-channel sales including through our website showed pleasing growth.
"I remain confident in the brand accepting that economic challenges may impact on potential growth and may reduce the speed at which previous growth levels can return. Lyle & Scott continues to maintain a loyal customer base and attract new partners and as a business we also continue to open new markets in the global arena."
An interim dividend of £2.97m was paid, against £3m the previous year, although Ms Watson did not receive any remuneration.
Employee numbers were steady at 119 with staff costs showing a fall from £4.7m to £4.5m.
The company was founded in Hawick in 1874 by William Lyle and Walker Scott as a hosiery and underwear manufacturer.
It moved into producing knitwear in 1926 and has been worn by Major winning golfers such as Tony Jacklin, Gary Player and Greg Norman.
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