For the year ending 31 August 2024, sales fell to £23.3m from £24.6m the previous year, while pre-tax profits dropped significantly to £1.1m from £2.1m.

The company, established in 1895 and operating stores across Scotland including in Perth, Aberdeen, and Inverness, attributed the downturn to tightening household budgets impacting “big ticket” purchases, alongside ongoing cost-of-living pressures and subdued consumer confidence.

Inflationary challenges, particularly concerning payroll for its approximately 200 staff, also contributed. This follows a similarly described “difficult” 2023 financial year, when profits fell by £800,000. The firm closed its Montrose store in March 2024 due to rising costs.

Despite the challenging environment, Gillies stated that the directors’ day-to-day involvement and a continued focus on operational discipline helped protect core areas of the business.

The period also marked a significant leadership change. Managing director Ian Philp retired after more than 25 years in the role, during which he oversaw the business’s expansion. Tom Rodgers, the former finance director of nine years, has stepped up as the new managing director.

Mr Rodgers acknowledged that 2024 was “another difficult year” but indicated that trading in the current financial year has shown improvement, with booked business increasing year-on-year. While keeping pace with cost inflation remains an ongoing issue, he expressed confidence that Gillies’ “sound financial base and a talented team of people” position it well to navigate future challenges.