Seiko says that its UK subsidiary’s commercial performance has been boosted by better sales in Continental Europe in its latest financial year.
Turnover rose by 13% from £64.4 million to £72.9 million for the 12 months ending March 31, 2017. However, the accounts for Seiko UK Limited state that the fastest growth for the business came from its operations on the Continent where it has a retail outlet in Germany and subsidiaries in Netherlands and France.
Those sales, reported in sterling, rose as the value of the pound fell by over 20% following Britain’s vote to leave the European Union.
Stripping out the European sales, UK turnover rose by 4%, the company reports.
Gross margin remained largely unchanged from the previous financial year at around 40%, but the boost from a weaker pound helped operating profit increase from £1.2 million in 2015-16 to £3 million in 2016-17.
Seiko opened a flagship boutique in London this year, which stocks its premium core line models along with luxury Grand Seiko collections.
The top 10 watch businesses in the UK amassed sales of £1.09 billion in 2016, of which Seiko UK Limited accounted for 6.7%.
2016 Vital Statistics
- Turnover: £ 72.9 million (+13%)
- Operating Profit: £3 million (+131%)
- Employees: 297