SALES at Pringle of Scotland fell 8.8 per cent last year, according to accounts filed at Companies House.
Although the losses have remained stable, turnover at the company was £17.74million for the year up until March 2008, down from £19.46million the previous year.
Gross margin fell from 46.7 per cent to 38.6 per cent. Pre-tax losses were cut slight
ly at £9.46million over the period, compared with £9.54million the previous year. Operating losses were £9.4million, compared with £9.43million the previous year.
Pringle, which closed down its Glebe Mills manufacturing plant in Hawick last July, says the main driver of the losses was the continued investment in the long-term development of the brand.
The accounts report by director Douglas Fang, the Hong Kong clothing magnate who bought Pringle in 2000, said: "We have continued to elevate the brand and improve the operating efficiency by reducing the number of inappropriate wholesale outlets, securing exclusive arrangements with premier retailers, improving the product assortment and introducing new product categories."
The report added that due to continued investment, the directors were not expecting to report operating profits in the short term, but were satisfied with the development of the brand.
Since the year end, £5million of funding has been received from parent company Pringle Enterprises.
