Orla Kiely continues to rebound as licensing deals grow
Orla Kiely
The reborn company, known by its official name of Olive & Orange Ltd, has reported a 61% increase in profit and 42% increase in turnover and it’s always pleasing to see profit accelerating faster than revenue.
The business is still small, but is growing strongly with turnover up to £5.04 million and operating profit up from £659,000 to £1.093 million. Profit before tax rose from £647,000 to £1.075 million and final profit for the year rising from £541,000 to £870,000.
The company said overall, trading “improved significantly on 2022 as the business continues to trade on the strength of its brand and designs”.
Turnover was driven by product revenue of £3.3 million, up from £2.1 million a year earlier, the bulk of which comprised the e-commerce business, “with many of the most highly-sought-after Orla Kiely products, including handbags, sold exclusively online”.
The launch of its new website drove major growth in both the UK and international markets and its EU business was helped by it opening a new hub in the Netherlands.
Its extended homewares range, a new initiative launched during the year, also supported the online growth.
The company also generated royalties income of £1.6 million, up from £1.3 million the previous year and said this was “another valuable contributor to product revenue and turnover”. The business currently has relationships with eight active licensees, with new licenses signed this year in the Womenswear, Children and Baby lines.
As mentioned, the Black Friday weekend was strong this time and year to date sales are some 26% higher than in 2022.
The company added that it’s in “an excellent position for future growth and investment”, with a cash balance of £1.9 million, up from £1.5 million this time last year.
The London-based Irish designer’s Kiely Rowan plc business (the retail arm of the historic Orla Kiely business) had gone under in late 2018 after an over-ambitious US expansion programme. The brand was relaunched in 2019 by Kiely, her husband and business partner Dermott Rowan and a small team, and has rebuilt itself since then as a retailer and wholesaler with a focus on e-commerce.
