Bremont Watch Company increased sales by 28% last year to top £22 million, but the business slipped back into the red with an operating loss of £1.15 million.
The business, founded by brothers Nick and Giles English 20 years ago, is driving for top line growth while investing in its manufacturing and technology centre near Henley-Upon-Thames, The Wing, which opened in early 2021.
It is now majority-owned by American investor Bill Ackman, and Hellcat Acquisitions.
Mr Ackman is founder and CEO of New York-based investment firm Pershing Square, which has stakes in Universal Music, Netflix, Domino’s, Hilton and railroad Canadian Pacific.
His net worth is estimated by Forbes at $3.4 billion.
Bremont closed a funding round at the beginning of 2022 with a £48.4 million investment from Pershing Square Foundation and New York-based Hellcat Acquisitions LP that valued the business at around £100 million.
The English brothers have surrendered both a controlling stake in the company as they have traded equity for investment.
Chris Reynolds has been managing director at Bremont since 2019. He is also an advisor for Clark Group, a private equity and business support company owned by Steven Clark, who has been chairman of Bremont for the past four years.
An operating loss of £1.15 million from sales of £22 million is unlikely to furrow any brows among Bremont’s investors, particularly as the company spent another £3 million in capital expenditure; slightly less than the £3.7 million invested in 2021.
Annual sales growth of 28%, if maintained, will transform the business if manufacturing keeps pace.
As Bill Gates once observed, people always overestimate the importance of one year’s growth and underestimate the power of it compounding over a decade.
Bremont opened three UK monobrand boutiques in partnership with Signet Jewelers in the 2022 financial year in addition to directly owned showrooms in Manchester and Shanghai.
Managing director Chris Reynolds says the company is focused on expanding its distribution and retail partnerships, particularly in the United States, and anticipates additional boutique openings.
CORDER’S COLUMN: Flying by the seat of their pants is paying off for Bremont brothers
From Paragraph 6, it would be the English brothers, Nick and Giles, not “the Giles brothers”. Nice guys both, but they no longer control the Flight Plan, going into headwinds, where space and turn-over are determining factors in a constricted Retail climate, consolidation and acquisition could be on the horizon.
The shark tank crew finally got to them. Without controlling interest they have reverted to employee status again. What a shame….
On recommendation I bought the Super Marine in 2021 and a brilliant watch. Shame the brothers no longer steer the ship.
I would not say that the brothers no longer steer the ship, just because investors have more shares. In my experience, they are very much responsible for strategic direction, product and marketing.