Waterstones profits rise by £40m in FY22

Waterstones has seen its profit-before-tax rise to £42.1m in the year to April 2022, up from £2.9m the prior year and £19.7 in FY20, as customers returned to the high street.

The bookseller also reported that full-year revenues soared 73% to £399.8m, as Covid-related restrictions came to an end. 

Although the group welcomed the easing of restrictions, it warned that rising costs and reduced consumer spending could still impact the group in the future. 

In its latest filings with Companies House, the group said: “Although Covid measures have impacted sales and provided a degree of uncertainty, the level of uncertainty has reduced significantly from last year, with future lockdowns judged to be improbable.

“The most significant further impacts on the company may be on sales and overheads in relation to reduced consumer spending and inflationary pressures, including increased energy costs.”

It added: “Several key economic factors have also been considered as part of the going concern review, including rising purchase and employment costs, exchange rate and interest rate fluctuations, the current conflict in Ukraine and longer-term consumer spending patterns, with no significant impact expected on the liquidity of the business.”