Timpson FY profits beat expectations at £40m

Timpson Group has welcomed full-year profits of £40.7m in FY22, up from £24.5m the prior year, “way beyond” the group’s expectations as it benefited from the lifting of Covid restrictions.

In the full-year ended 1 October 2022, its turnover also hit £297.4m, up from £212.2m the year before. 

The group said it was “particularly pleased” with the performance of its dry cleaning business which bounced back over the period. It noted that 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 doing well in the coming year”. 

The group’s photo and hospitality businesses also benefited from the lifting of post-Covid restrictions. Max Spielmann and Snappy Snaps saw business strengthen as “weddings, parties and holidays have produced many more pictures to print” while the return of overseas travel led to “record” sales of passport photos. Its hospitality division was again helped by the end of social distancing and a “return of the social scene”.

While the group said it was still waiting for a “revival” of its shoe repair business, it noted that its locksmiths, vending and online sales division, known as Timpson Direct, was “starting to provide solid profits to the group”.

Looking ahead, the group warned that its directors expect the coming year to be a “challenge for the retail environment”, but said its “continued optimism, despite economic uncertainty, is shown by our continued high level of investment in new shops and store refits”. 

In a filing on Companies House, its strategic report 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.

“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.”

The statement added: “The year ahead is full of uncertainty. It reminds me of the 1970s when we had an energy crisis, a three day week and inflation which, at one point, went above 25%. 

“No-one really knows what will happen to the economy due to inflation and the consequences of war in Ukraine, but I’m sure that our fortunes continue to depend on our ability to watch the cash, stick to what we know well, look after our customers and treat everyone with a big dose of kindness.”