Triumph International has recorded a huge rise in profit, citing its global transformation programme as a key driver of bottom-line growth, accounts filed with Companies House show.
In the year ended December 31, 2016, the group, which operates lingerie brands Triumph and Sloggi, posted a 42% rise in profits to £2.43 million for the UK and Ireland.
Triumph International said underlying profits were positively impacted by a one-off contribution of £2.9 million for the sale of its UK warehouse and office building in Swindon.
The building was closed in September 2016 and Triumph’s warehouse facilities were moved to France.
Without the contribution of this sale, overall profits would have amounted to £482,198.
Total profit was negatively impacted by the one-off provision of £963,266 with regards to the planned Triumph store closures in 2017.
Also in 2016, Triumph International announced a global governance restructure, aiming to transform the business into brand led business units, characterised by distinct brand identities, individual consumers and a key product concept focus across all brands.
“During the year, the Triumph media campaign ‘Find the One’ continued across the ecommerce channel, which successfully delivered global digit growth for the year. In the UK, the campaign was supported by a local UK ambassador,” said Triumph International finance director of Northern Europe Marika Kovacs.
“New campaigns have been designed for the re-positioning of Sloggi focusing on engaging customers to ‘try our bra’ to feel the comfort for themselves upon the expected launch early 2017 of the new Sloggi Wow products.”
Turnover in the UK and Ireland declined slightly to £32 million from £32.7 in 2015, as consumers felt the impact of the sterling devaluation.
Looking ahead, Triumph International said it remains “sharply focused” on its vision to transform and maintain Triumph International as a sustainable growth company.
However, it warned that the devaluation of the pound may drive wholesalers to improve their working capital to mitigate risk, which could lead to sales volatility in this channel.