Fraser hart chosen with love
The re-positioning of Fraser Hart includes a new marketing message: Chosen with Love.

Fraser Hart fighting fit after Rolex store sales trim turnover to £32.2 million

Fraser Hart has struck an upbeat tone in the director’s report accompanying its most recent financial results, despite sales dropping by almost half from £63 million to £32.2 million for the year to June 2021.

Fraser Hart has struck an upbeat tone in the director’s report accompanying its most recent financial results, despite sales dropping by almost half from £63 million to £32.2 million for the year to June 2021.

Both of the past two financial years were affected by government-enforced store closures: the first hard lock down from April to June 2020 and the shuttering of stores in the first quarter of 2021.

“Given the recent disruptions caused by the pandemic, the directors are extremely satisfied with the financial results for the year ended 27 June 2021,” the report states.

Fraser hart turnover
*2007 financial year is for nine months. **2015-16, change of financial year to end June 30th.

Fraser hart operating profit

Turnover for Fraser Hart peaked in 2018/19 at £86.4 million.

Since then, the business has sold four stores to Watches of Switzerland Group for a reported £31.7 million and three to Beaverbrooks.

Details of the Beaverbrooks sale were not discussed at the time, but a gross consideration of £4.9 million was included in the FY21 accounts for the sale of two stores.

All seven stores were authorised to sell Rolex, and the disposals ended Fraser Hart’s long standing agency with the world’s biggest luxury watchmaker.

Its watch portfolio currently includes Omega, Longines, Tudor, Breitling and TAG Heuer.

There have been additional store closures over the past two years, which have significantly cut costs at Fraser Hart.

In the year to June 2019, the company employed 388 people with wages totalling £8.5 million. That has dropped to 238 employees in the year to June 2021, costing £5.1 million in wages.

Selling stores to WoSG and Beaverbrooks also cut debt for Fraser Hart. in the 2020 financial year, interest payments totalled £1.1 million, but this dropped to just £92,000 in FY21.

Fraser Hart’s board believes the company is now better prepared for future opportunities, and to invest in its remaining stores.

“During the year the Board approved the sale of shares in a subsidiary containing the trade and assets of two stores to Beaverbrooks for a gross consideration of £4.9 million. This was the final step in a strategy to release resources to accelerate the development of the business into a quality omni channel proposition in the fine watch and jewellery sector,” Fraser Hart reports.

“The board believes that the actions taken, both to recalibrate the business’s cost base and to use the proceeds of the asset sales to eliminate the term debt, leaves the business well resourced to take advantage of any opportunities that arise as we emerge from the disruption caused by the covid pandemic,” the company states.

Leave a comment

Your email address will not be published. Required fields are marked *