Berry Bros back in the black

Berry Bros & Rudd’s retail arm is back in the black, after operating profits rose by £13m on its retail business, according to accounts filed at Companies House.

The independent wine merchant saw operating profits of £1.68m at its retail and wholesale subsidiary BB&R Ltd, compared to an £11.5m loss reported in 2015.

Profits before tax were reported at £1.72 million in the year to 31 March 2016, an increase of 124% on the previous year’s £7.12 million loss. The 2015 loss, which was deeper than that the retailer’s 2012-13 “darkest hour” had been blamed on the challenging environment and lower than expected sales of the Bordeaux en primeur campaign, as well as around £7.3 million arising from irrecoverable debts from its Asian subsidiary companies.

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Although turnover at the royal warrant holder was hit this year, falling 5.8% to £124 million down from £131 million last year, the company said it had made “significant steps” to improve its business performance following a “disappointing” 2015, and noted a group-wide programme of business restructuring. In July 14 it streamlined the board and created a new ‘family board’. 

“The focus of stabilising existing business has delivered solid performances across our portfolio in wine, spirits, storage, hospitality and education,” the directors’ strategic statement said.

The revamped and relaunched website and e-commerce was trading successfully, it added, and the redeveloped and enhanced London HQ in St James’s had created enhancements likely to yield “a positive retain in future periods”. The accounts also reported a £407,000 loss relating to a legal dispute in Hong Kong, although the company noted that £3.9 million had been recovered, and the dispute successfully settled.

BB&R Ltd, which trades as Berry Bros. & Rudd and Fields Morris & Verdin, forms the retail and wholesale arm of the wider parent company and includes its Hong Kong, Japan and Singapore subsidiaries, as well as its negociants business Richards Walford and Morris & Verdin.

In July, parent company Berry Bros & Rudd Ltd reported turnover down 4.4% to £145 million, although it stemmed losses before tax to £640,000 – a 90% reduction from its previous £6.1 million loss.

Today BBR’s CEO Dan Jago, who is also a chairman of the Wine and Spirits Trade Association, warned that the wine and spirits company is facing one of its toughest eras with Brexit, which poses a “monumental challenge”, capable of inflicting damage on the industry.

Last week the company announced a collaboration between its whisky distiller, The Glenrothes and Prince Albert II of Monaco, launching a limited edition of The Glenrothes 1992 Dow’s Single Cask Whisky, with two bottles auctioned at the Monte Carlo Whisky Conference on Friday.