Oliver Bonas has filed its accounts for 2023 with the lifestyle retailer saying that net profit for the year fell to £6.82 million from £7.62 million a year earlier.

That was despite turnover rising to £135.78 million from £115 million in 2022. Gross profit hit £74.43 million after £61.33 million in the previous year. But administrative expenses were up significantly, rising to £65.48 million from £52 million. 

Operating profit fell to £8.95 million from £9.28 million and profit before tax fell to £8.63 million from £9 million with the tax on the company’s profit also being higher than in the previous year.

The business sells fashion, jewellery and homewares at mid-level prices and also said that despite the tough economic backdrop, sales were positive both through its physical stores and online, and it saw like-for-like sales growth through both channels.

Overall turnover in the core UK market increased from £122.1 million to £132.7 million and its sales elsewhere in Europe edged up £2.4 million to £2.45 million. Turnover in the rest of the world advanced from £521,470 to £547,232.

So what caused profit to fall given the significant increase in revenue? Clearly costs rose and the company invested heavily in its business. During 2023 it opened seven new stores and upsized or relocated eight of its existing locations, ending the year with 84 stores.

It also created almost 200 jobs as its expansion plans were put into action.

Support payments to employees to help with high inflation also continued until the end of February 2023 with the start of last year seeing inflation at 10.5% in the UK. 

And the company enhanced its employer pension contribution based on length of service, which more than 30% of its workforce benefitted from. 

Oliver Bonas didn’t share many details about trading during 2024. But director Timothy Hollidge said the start of the year had been “stronger than expected”.