John Smedley posts £720,000 loss as knitwear maker begins turnaround
The Guardian reports John Smedley's sales fell 5% to £16.8m and it swung to a £720,000 pre-tax loss in the year to March 2025, as its managing director describes a turnaround.
The story in focus
John Smedley's sales fell 5% to £16.8m and the Derbyshire knitwear manufacturer swung to a £720,000 pre-tax loss in the year to 31 March 2025, against a £270,000 profit a year earlier, The Guardian reports. Managing director Jess McGuire-Dudley said the firm is in a turnaround, with recent months profitable and first UK sales growth in over five years in the 12 months to March 2026.
- Sales fell 5% to £16.8m in the year to 31 March 2025, per Companies House accounts
- The company recorded a £720,000 pre-tax loss, after a £270,000 profit the year before
- Rising employer NICs and minimum wage added £700,000 to costs last year
- A £4m machinery investment in 2024, a Bill Nighy collaboration and a new JS line preceded UK sales growth in the 12 months to March 2026
- Managing director Jess McGuire-Dudley said the last several months have been profitable
Financial results and cost pressures
Accounts filed at Companies House show John Smedley's sales fell 5% to £16.8m in the year to 31 March 2025, The Guardian reports. The group slid to a £720,000 pre-tax loss, having made a £270,000 profit the year before.
Higher employers' national insurance contributions and the legal minimum wage added £700,000 to the company's bills last year, according to the report. McGuire-Dudley said energy and labour costs can eliminate profitability quickly and are outside the company's control.
Turnaround measures and outlook
McGuire-Dudley told The Guardian the business is in the midst of a turnaround and that the last several months have been profitable. She said the deal with actor Bill Nighy, the cheaper JS line and a new website helped drive the first UK sales growth in more than five years in the 12 months to the end of March 2026.
The company invested more than £4m in updating machinery in 2024 to improve efficiency and widen the range of styles it can produce. It has also improved its online presence, added a dedicated French website and opened a showroom in Milan.
The Guardian reports that a fall in the value of the yen hit sales to Japan, which accounts for half of the company's international trade.
What drove John Smedley's first UK sales growth in more than five years?
The Guardian attributes it to the Bill Nighy collaboration, the cheaper JS line and a new website, which helped deliver growth in the 12 months to March 2026, alongside improved online and European sales efforts.
Sources & further reading
Help keep the record accurate. Send a correction.