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Fast-growing Solihull sportswear firm Gymshark has posted a hike in profits. The newly-filed accounts reveal profits are up as its founder was identified as being one of the richest people in the Midlands.
The firm posted a £45.4m pre-tax profit for the year to July 2021, compared to £30.4m in 2020. Sales also rose sharply, from £260.7m in 2020 to almost £402m last year – a rise of 54 per cent.
Gymshark was founded by Ben Francis when he was just a teenager in the garage at his family home in Bromsgrove in 2012. The recent Sunday Times Rich List, which was published in the newspaper at the weekend, now values Gymshark at £1.25 billion and Mr Francis’ personal wealth at £900m.
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The latest accounts also refer to a restructure at Gymshark which puts 121 jobs at risk. It was announced in April.
A statement released by the company at the time said the move was driven by its international expansion, growth plans and the need to create “commercial accountability”.
Mr Francis said: “This was an incredibly difficult decision to come to and we know that this will be upsetting for our people. These proposals are subject to consultation and no decision has been made about how we will ultimately proceed.
“Our immediate priority is to help and support those at risk through this process and do what we can to best set them up for the future. We want to stress that this is absolutely no reflection on the quality of work, character or professionalism of those people affected and we will be doing all we can to help them demonstrate their skills and expertise.”
Mr Francis said that if redundancies are made, they will take place before the end of July this year. He added that more than 100 new roles will be created as part of the restructure, with at-risk staff being offered new roles where possible.
On its website, Gymshark says it has more than 900 employees across offices in five regions, including Solihull and Denver, Colorado. The company’s headquarters is at Blythe Valley Park in Solihull, close to J5 of the M42.
Speaking about the restructure plans, Mr Francis added: “The proposals also see over 100 new roles being created and, of course, we will seek to offer as many of our people as possible these new roles where it is appropriate to do so.
“It is driven by our international expansion, ambitious growth plans and the need to create commercial accountability within the regions and ensure customer strategies are driven by local lenses, specific knowledge and data, not just by those of us here in Solihull.”
The restructure announcement came four months after Gymshark revealed plans to open its first physical store in London. In December, the retailer confirmed that it had taken on a three-storey building on Regent Street in the capital.