UK spectacles group Crown Eyeglass is hoping to earn half-year profits of UK 405,000 this year compared to UK 365,000 for the previous six months, despite increasing competition in the optical sector….
UK spectacles group Crown Eyeglass is hoping to earn half-year profits of UK 405,000 this year compared to UK 365,000 for the previous six months, despite increasing competition in the optical sector. The group headed by Mr. Joe Lee saw its turnover increase from UK 4.46 million previously to UK 5.92 million this time. Earnings per share leapt 11% to UK 0.17 and shareholders are being rewarded with a 12.5% boost in their interim dividend. But Mr. Lee has said that retail optics in the UK and Scandinavia is getting even more competitive as shown by the growing amounts of advertising and marketing by the major optical groups. “Our strategy is to continue our policy of controlled organic expansion by opening new retail outlets only after a careful assessment of the local market conditions and site availability,” he explained. “By adopting this position we shall be able to remain in a position whereby we can build on our solid foundations whilst competing in the market place.” Mr. Lee added that in the UK, the company has expanded the number of its Direkt Optik International outlets to eight. Five of them comprise a combination of conversions from Crown Optical centres and the opening of new company-owned outlets following the end of franchise agreements. In addition it also has 44 Crown Optical Centres of which 28 are franchised. Crown has 21 outlets in Scandinavia and leases have been signed for a further two shops scheduled to open in February. Mr. Lee says the company intends to maintain its expansion plans in Scandinavia for the foreseeable future. It is currently in the process of seeking premises for additional outlets in Sweden and Denmark. He says the ready-made reading glasses subsidiary, Readyspex, produced “satisfactory” results for the first half, adding it is appointing additional distributors for its overseas business.