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Nigel TAYLOR Published
December 4, 2025
Creightons is enduring the “most challenging trading years ever faced”, as the beauty and personal care company on Monday revealed a series of operational negatives that hurt first-half sales.
And those tough trading conditions coincided with the departure of its managing director Bernard Johnson towards the end of November. No comment was made over his exit, other than that a process to replace him “is well underway”. In the meantime, the business is being led by Philippa Clark and Martin Stevens.
Underscored by a year of significant supply chain and inflationary pressures, Creighton’s half-year sales to 30 September fell 7.1% year on year to £27.5 million.
Its Contract division, albeit its smallest segment, was particularly hard hit, with sales falling over 37% to £4.8 million and its Branded division sales also fell 3.3% to £10.4 million. But at least its core Private Label segment saw sales rise 9.8% to £12.2 million.
It said the Branded division suffered a “significant” decline in a key export market hit by a sharp economic downturn while the Contract division saw a major reduction in orders, mostly due to overstocking.
However, it noted both the Private Label and Branded divisions continue to gain momentum and it anticipates the units will begin to recover during the second half “as orders are starting to flow through again”.
Supply issues and inflation contributed to higher input and overhead costs and that meant reduced profitability.
But a six-point programme “designed to restore margins, reduce costs, lower stocks levels and return the business to positive cash flow” has resulted in the gross profit margin increasing to 42.2% from 40.4% and administrative costs dipping 5.1% to £9.3 million.
Operating profit before exceptional costs increased to £0.5 million from £0.3 million and operating profit before exceptional costs as a percentage of sales increased 0.9% points to 1.8%.
EBITDA (excluding exceptional) for the first half of the financial year 2025 moved up to £1.4 million from £1.1 million. Net debt for the group was also cut to £6 million from £9 million.
On a positive note, it said the positive EBITDA “indicates it is generating more earnings from its core business operations.
“Once the financial stability has been successfully achieved, the group's focus will be to pursue new growth opportunities through continuing to invest in research and development, improving manufacturing efficiencies and expanding into new markets”.
And with key sales priorities centred on its Private Label and Branded divisions, the company said it’s diverting resources from the Contract business “to take advantage of growing and ongoing opportunities… including additional investment in digital platforms, websites and social sites supporting the promotion of our brands”
The target is also to develop key markets in both the US and China with its leading brands Emma Hardie and Feather & Down “a priority”.
It said considerable time and investment has already been undertaken in China with the Emma Hardie brand, launching on a number of digital platforms including Tmall and Douyin.
Meanwhile, its Feather and Down brand is launching on Amazon in both the US and German markets, “key stepping stones in securing listings with mainstream retail”, while the Emma Hardie brand is to extend its presence in these strategic areas.