Pringle of Scotland has received a further multi-million pound funding injection from its Hong Kong based owners as it continues to rack up losses.
Accounts recently lodged at Companies House show relatively flat turnover of £5.37 million in the 12 months to January 31 this year.
However a rise in expenses, from £6.95m to £7.47m, pushed pre-tax losses to £5.14m, from £4.11m.
That saw the company issue 4.5 million new shares at £1 each to raise £4.5m of cash.
In addition there was a £2.7m loan introduced from the parent company.
Writing in the accounts director Douglas Fang said: “The loss for the period was offset by an increase in share capital of £4.5m following a further injection of funding by the company’s immediate parent company.”
Mr Fang noted that following the end of the financial year “further funding of £3.45m has been received” from Pringle Enterprises.
He said: “Consequently the directors are satisfied with the financial position and future prospects of the company and with the ongoing financial support necessary for the company’s continued strategic investment.”
The accounts state that all bank loans, which amounted to £422,000 in the period, are guaranteed by Fang Brothers Holdings.
In the accounts Mr Fang said the company did not expect to return to profit in the short term but would continue to develop its brand around the world.
He said: “The company continues to invest in the long term development of the Pringle brand and business on a global basis.
“Investment in the Pringle of Scotland brand will continue. Direct retail development in both the UK and overseas is a key focus for the business in the short and medium term along with the development of alternative distribution channels such as ecommerce and selected licensing partnerships.
“At the same time emphasis upon managing cost control has continued. The directors are not expecting to report operating profits in the short term but are satisfied that the development of the brand and of the business is progressing in line with their long term strategic objectives.”
Average staff numbers grew by two to 64 while employee costs lifted from £2.25m to £2.36m.
Net debt was more than halved from £1.3m to £612,000.
Pringle, which has its registered office in Edinburgh and still manufactures in Hawick, can trace its roots back to 1815.
It has moved away from its twin-set and golfing heritage since its 2000 takeover by the Fang family.
The brand is now more often seen worn on catwalks or by celebrities ranging from Tilda Swinton to Ewan McGregor.
It has recently launched a project, called Pringle Deconstructed, allowing people to design a bespoke cashmere jumper with prices starting at £995.
Pringle of Scotland’s ultimate controlling party is Pringle International Holdings, which is incorporated in the British Virgin Islands.
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