SOAPWORKS, the Easterhouse-based skincare business, has seen losses widen to £293,140 in the year to January 31 as turnover fell by 15 per cent to £9.6 million.
The business, established in 1988 by The Body Shop founders Anita and Gordon Roddick, saw sales fall both domestically and internationally over the period.
Writing in the company’s accounts, managing director Jan Zadruzynski said this came largely as a result of reduced sales to two key customers, but the impact was somewhat mitigated by the increase in several other accounts, which saw double digit growth.
In the year to January 2 2016, after-tax losses were £207,656. The previous year pre-tax profit was £97,827.
Soapworks became part of L’Oreal after the French group acquired The Body Shop in 2006. It subsequently became independent after a management buy-out in 2010.
Today the business makes soap for a number of high-end clients including Burberry, Crabtree & Evelyn, ESPA and Marks & Spencer.
Mr Zadruzynski said: “The company experienced a contraction in its turnover both domestically and internationally during 2016, which was representative of the challenging retail market that the company works in.”
He added that in spite of the reduction in revenue, cost saving improved the gross profit margin from 10.8 per cent to 12 per cent.
Sales in the UK were down 13 per cent to £8.5m, while in the rest of the world, the fall in sales was 20 per cent, to £1.5m.
The average number of staff employed reduced to 90 from 101, with the bulk of the reductions on the manufacturing side.
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