Wholesale group reports record first half revenues

WHOLESALE group Kitwave has reported record first half revenues and operating profits but warned of the impact of employer overheads and impacted consumer confidence.

- TOM KEIGHLEY

The North Shields-based group saw unaudited revenue jump 26.7% to £376.2m in the six months to the end of April, as adjusted operating profit over the same period grew nearly 22% to £13.2m.

Kitwave said its retail and wholesale division had slightly outperformed expectations and said recent acquisitions had significantly boosted its nationwide footprint.

But since a pre-close trading update in early May, bosses said consumer confidence has deteriorated, impacting leisure sector customers who saw footfall increase on the previous year but consumption down. Kitwave said the impact was noticeable in its higher margin tourism-based customers.

The group says rises in Employer National Insurance contributions estimated to be about £1.8m this year and £2.7m next - will add to its costs from the second half, and that it no longer thinks its can offset the rises.