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Rail strikes dent takings at Tie Rack

William Gleeson
Friday 14 October 1994 18:02 EDT
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THE RAIL strike cost the niche retailer Tie Rack, which has 10 shops in railway stations, pounds 150,000 in lost revenue, the company said yesterday as it announced first-half results showing a 6 per cent increase in profits, writes William Gleeson.

It also emerged that British Rail is considering compensating station retailers for the effects of the strike through rent rebates.

Turnover was up 11 per cent to pounds 36.5m because of 13 new sites being opened overseas, including six at airports, railway staions and on five Scandinavian ferries.

But like-for-like sales fell 5 per cent, because of reduced consumer spending in the UK following this year's tax rises, the company said.

Pre-tax profit was pounds 407,000, up from pounds 384,000. Despite a strong balance sheet, with net cash of pounds 9.5m, the company is skipping an interim dividend payment.

Tie Rack says it will finance future growth through its own resources. It plans to continue opening new outlets at overseas airports and railway terminals.

British Rail, which collects pounds 43m a year in rent from station traders, may return some of it to compensate for the 23 days' trading disrupted by strikes. However Railtrack, which manages 13 of the largest rail termini, is refusing to compensate retailers.

(Photograph omitted)

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