Trading Statement - Year End 2024

Performance has improved across the second half as we lost the drag from the cold and wet summer period. Sales increased by 9% compared to 4.8% in the first half, taking the full year to +6.9% with Garden Centres at 6.0% and Restaurants at 13.5%.

Like for like (LFL) sales ended the year at +2.9%, +2.1% in Garden Centres and +9.1% in Restaurants. LFL trading in Garden Centres was -0.1% in the first half, and +4.1% in the second half.

We continue to outperform both the GCA and HTA market reads. LFL centres, excluding the contribution from recent acquisitions, are +3.2% ahead of the GCA market on the most recent data (YTD November); performance is strong across all departments with Clothing the standout at +5.7% ahead of the market.

As communicated in the last trading update, capital investment across HY2 was centred on two acquisitions, Frosts at Woburn Sands in Buckinghamshire and Willington in Bedfordshire. These have been great additions to the group, and whilst it is early days, both centres are trading well and are ahead of budget.

Across our 4 most recent acquisitions, Beckworth, Fosseway, Woburn Sands and Willington we generated £25m Sales in 2024 with Beckworth and Fosseway seeing an uplift of over 20% across Q4 as they traded their second Christmas as part of the group.

We continue to drive working capital improvements through reduction in stock holding with LFL Garden Centres reducing stock by more than 4%, and our central warehouse down 8% on last year, led by Gardening and Garden Leisure.

Margin improved again in 2024 across both Garden Centres and Restaurants. GC margin improvements were driven by stronger buying margin across Fashion, Christmas, Pets and Seeds & Bulbs and reduced discounting in Christmas and Garden Leisure.

Although we have finished the year with positive overall sales growth and margin improvement, these have been insufficient to match the significant inflation in staff costs driven primarily by successive increases in the National Living Wage [NLW]. Productivity has also improved in the year, but equally not to the same extent as inflationary increases, putting pressure on profitability. With more adverse changes to NLW and National Insurance coming in April 2025, we have put plans in place to mitigate the effects and protect our profitability.

We will start the new year by taking on a new centre at Harlestone Heath, a centre formerly traded by Dobbies. We will be closed for a period of extensive refurbishment before we open in the spring. We are planning further acquisitions across 2025 as we look to capitalise on market opportunities and continue with our successful buy and improve strategy.

Yours faithfully,

Neil McDonald

Group Finance Director & Company Secretary

Email: neil.mcdonald@bluediamond.gg