Half Year 2025 Trading Statement
We have all been enjoying the exceptional weather over the first half of this year and we are happy to announce that this has translated into a very strong performance for Blue Diamond. After the disappointing gardening season in 2024 which was one of the wettest on record we have seen the reverse of this in 2025 which has led to a great season for plants, gardening and garden furniture. Home, restaurants and non-seasonal departments continue to perform well also.
Overall sales increased by 18.4%, with garden centers +18.5% and restaurants +18.4%; within garden centers we have seen double digit growth in plants, gardening, garden furniture and home with high single digit growth across fashion and food.
Like For Like sales increased by 8.4% and are in-line with the Garden Centre Association as the entire market benefits from the unseasonally warm weather. Like for Like Customer numbers are +3.4% and basket spend is +5.0%.
We continue to drive efficiencies across our estate and have had success at improving both the profit gap (the difference between bought in margin and selling margin) and employee productivity (profit per full-time equivalent). The profit gap has improved by 0.8% generating a £1.3m improvement in gross profit and productivity has improved by 6.5%, generating a £1.8m fall in staff costs as a percentage of sales. The latter has been achieved despite the substantial increase in payroll costs since the Budget took effect in April.
Stock has been well managed in the half and is level with last year across LFL centers despite the 8.4% sales growth . Cashflow remains strong in the group and as a result we exited the half with a Net Debt to EBITDA ratio of 0.9. This ratio will increase at year end following the acquisition of Barton Grange later this month (see below).
As we announced in February, buying and improving centres is a key part of our shareholder value-creation strategy. We have added 4 centres this year with 2 more due to come onstream in the next couple of months.
- Yarnton Home and Garden Centre, a 10-acre leasehold site situated some 7 miles north of Oxford, for £2m. It currently turns over £6m and comes with a successful soft play facility for children, an offer which we are increasingly keen to provide to customers.
- 3 centres that used to trade under the Dobbies brand, were acquired in 3 separate deals for no premium. They have all recently re-opened following a period of closure to undergo a full refurbishment.
- Harlestone Heath, a 6-acre site just north of Northampton. Opened 11th March
- Huntingdon in Cambridgeshire, a 17-acre site. Opened 10th April
- Worlds End in Aylesbury, a 11 acre site. Phased opening on 1st May with grand reopening happening on the 21st July
We are pleased to confirm that Barton Grange Garden centre, a 15 acre Freehold site in Preston will be acquired for £24m later this month. Barton Grange is a fantastic addition to the group. It is the 10th biggest centre in the UK and has won destination garden centre of the year 9 times in the last 12 years. The business has a 70 year history and relocated to its current purpose-built location in 2008. It is already a highly successful centre, but there is an opportunity for us to introduce some important product ranges not currently sold and thereby create a strong return on the investment.
The acquisition also comes with the Garden Centre Plants hardy nursery, which operates from 23 acres and has a strong reputation, delivering to many independent centres across the North. The transaction is due to complete later in July and is partly funded by sale and leasebacks of two smaller centres. We currently anticipate one further acquisition later in the year.
The above 6 transactions will take the group to 52 centers with a turnover close to £400m.
The early signs on the new acquisitions are positive: the ex Dobbies centers for example are 100% up on their pre-acquisition performance and well ahead of their business case.
Chairman Simon Burke commented, “It is great to see Blue Diamond trading strongly again. Although obviously benefitting from the better weather, our performance owes much to a series of management initiatives to improve trading and profitability, which will have lasting benefit. We are looking to the rest of 2025 with confidence.”
Yours faithfully,
Neil McDonald
Group Finance Director & Company Secretary
Email: neil.mcdonald@bluediamond.gg