Laura Ashley committed to hospitality growth despite retail sales hit

Laura Ashley has said it is committed to the development of its hospitality arm despite warning that full-year performance is likely to fall short of market expectations.

The group's like-for-like retail sales were down 4.2% in the 26 weeks to 31 December 2017, with total group sales at £122.9m, down from £134.7m the year before. The company recorded a pre-tax loss of £1.5m for the period.

Laura Ashley said it remained committed to developing its hospitality arm, but would do so through a licensing model after selling the Manor hotel in Elstree to Countrywide Hotels earlier this year.

The retail firm has one licensed hotel and four tea rooms. In its performance report it says it has a number of other opportunities in the pipeline with further hospitality openings planned this year.

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