PRE-TAX profit at outdoor clothing company Jacobs and Turner has plunged 21% to £2.4 million after the Nevisport retail business it rescued from administration in 2007 posted a seven-figure loss.
Nevertheless, Afzal and Akmal Khushi, the brothers who own the Glasgow-based company, have insisted it has achieved "another strong performance" and vowed to continue to expand its presence on the high street.
Jacobs and Turner, best known for its Trespass brand and retail chain, saw turnover rise 4.9% to £64.9m in the year to June 24, 2012.
Company directors said: "Another strong performance was achieved by Jacobs and Turner as a company, despite the mild winter, although the wet weather conditions towards the end of the financial year impacted favourably on the result."
They added: "The pleasing performance by Jacobs and Turner in very difficult market conditions was diluted by a disappointing result in a subsidiary where a complete review of operations has been carried out with appropriate remedial action put in place."
The directors did not name the business but accounts show losses at Nevisport subsidiary, which has stores in Aberdeen, Inverness, Fort William and Glasgow, widened from £330,000 in 2011 to £1.3m in the 2012 financial year.
The directors said they would continue to add stores to take advantage of the collapse of a number of retailers. "The ongoing strategy of expanding the retail estate continues, assisted by the favourable lease opportunities available on the high street."
They said the company expects to expand market share "due to recent casualties in the market place".
Jacobs and Turner was founded in 1938 as a workwear clothing manufacturer before Chaudry Khushi, who then owned a grocery business, bought the factory for £1000 in the late 1960s.
By the end of the 1970s Chaudry's sons Afzal and Akmal had joined and were starting to push the business towards specialising in winter sportswear and other outdoor clothing.
Trespass entered the retail trade at the end of the 1990s and has 120 stores in the UK plus dozens more franchised around the world.
In 2007 the company bought retail chain Nevisport out of administration, saving around 80 jobs.
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