Eddison Books has been incorporated in November 2015 and started its operation in December when it bought the assets of Eddison Sadd and sisters companies Connections Publishing, and Book In A Box.
We are finishing the first financial statement and, no big surprise, it was expected…
The first year is not great. These numbers are not the actual numbers since we still need to work on them, make verifications and I still need to be careful because the ways accounts are presented in France and in the UK can be confusing ( the devil is in the details). But consider this as the trends:
Where we are
The business needed a new start and it is always more demanding than expected. For the 1st year, it should look like this:
- Sales = £677,000
- Cost of Sales = £491,596 This is huge but it doesn’t reflect the reality since it includes the cost of the assets
- Gross profit = £186,085
- Overhead = £480,765 Still too important but we needed to renew the equipment, chairs, computers, etc.
- Operating Loss = (£294,680)
This is not great but a loss can be expected the 1st years of a business because things are only starting and at the beginning, you need to invest. For me, coming from another country, it has and it is still a fantastic challenge.
Where we are going
For 2017, there are many reasons to be optimistic:
- Sales are growing and we will probably reach one million in Turnover
- The cost of sales is growing slower than the sales.
- Overhead stay at the same level
I am still not sure we will be break even in 2018 but I believe now that we should be able to make a profit in 2019.
And in Paris?
In Paris for Leduc.s Editions, it has been a tough year with the presidential elections but we have achieved a growth of 32% (for the moment) and I still hope we can reach the symbolic level of €10 million in sales for 2017.
