Sales volumes of fast fashion company are up, but profits down by a third
Fashion clothing company Basic Thinking reports increased turnover and a pre-tax profit of £553,535 in what directors say is an increasingly demanding retail market with very competitive margins.
Latest accounts for the Grace Road-based company show that while turnover was up 13 per cent in 2014 compared with the previous year, pre-tax profits are down on the £826,420 reported in 2013 when exceptional items are excluded. In 2013 the company reorganised its business operations in Egypt, where the bulk of its clothing manufacture takes place, and agreed a debt write-off contributing to an exceptional cost of £2.9m.
The company, which employs 64 staff, sources and designs in-house and manufactures in its own factory based in Egypt.