Losses have continued to mount at luxury label Temperley London despite the label despite an almost £1.8m boost from investors and rising sales.
In its latest accounts filed at Companies House, the brand led by designer Alice Temperley, made a pre-tax loss of £1.7m in the year to 31 December 2017. Sales were up 4% to £11.3m and gross margin was by six percentage points to 51%.
The numbers prompted auditors RSM to issue a warning on its accounts stating RSM warned that the company’s £1.4 m in operating losses and net liabilities “indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern”.
However the company insists it now has the right operational structure in place and is focused on building its wholesale business. Last autumn it appointed a new CEO Sally Hughes, a former marketing head at Net-A-Porter and UK general manager of Glossier.
Temperley is sold thorough two standalone stores in London and at high-end multi brand retailers such as Net-A-Porter.com and Matchesfashion.com. It also creates an accessibly priced line for John Lewis called Somerset.