Family-owned business Leekes Retail & Leisure Group has announced “strong profitability” despite the challenging economy and inflationary environment.

The group reported EBITDA of £6m and a profit before tax and exceptional items of £3.1m for the year ending March 31, 2024.

According to Leekes, the home retail market was “significantly” affected by lower consumer demand for high value home purchases brought about by the combination of both high inflation and higher interest rates.

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However, a gross margin improvement of 270 basis points to 42.6% and significant operational efficiencies saw the retail business remain cash generative with EBITDA of £2.8m and a profit before tax and exceptional items of £1.2m.

Commenting on the results, managing director of Leekes Retail Emma Leeke said: “We are delighted to report continued strong results despite the well-publicised challenges faced in the retail sector.

“Our excellent profitability over the last four years has enabled us to continue our programme of investing in significant capital expenditure in our retail business.

“We are excited by the successful opening of our newest store in Cheltenham… and the imminent start of the final phase of the refurbishment of our flagship store in Llantrisant, South Wales.”

It also saw an uplift in its leisure business, with The Vale Resort at Hensol, South Wales, which celebrates its 25th anniversary this year.

The leisure business reported a turnover growth of 7% and a gross margin uplift of 130 basis points, compensating for the overhead cost inflation which resulted in an EBITDA of £3.4m and a pre-tax profit of £2.2m.

The group’s newest business, its distillery operations at Hensol Castle has had listings across several supermarkets.

The company continues to improve its production facilities, with an additional £0.4m invested in the year.

The group also completed its triennial refinancing facility with a £25m Revolving Credit Facility agreed with Barclays Bank.