Luxury Gunmaker Purdey Reports Rising Losses Amid European Market Contraction

James Purdey and Sons, the prestigious gunmaker holding royal warrants since 1868, has disclosed a widening pre-tax loss of £4.6 million for the fiscal year ending March 31, marking a deterioration from the £3.9 million loss recorded in the previous period. The financial setback comes as the company confronts a precipitous decline in European sales, which collapsed by more than half to £938,000.

The Mayfair-based manufacturer, which specialises in bespoke sporting shotguns and rifles alongside luxury clothing and accessories, saw total revenues edge marginally lower to £17 million from £17.1 million year-on-year. This modest top-line decline masks significant geographical shifts in the company’s revenue composition, with core markets in the United Kingdom and United States demonstrating positive growth that partially offset the European contraction.

Established in 1814, Purdey has maintained its position as gunmaker to British royalty across successive reigns. The company received its inaugural royal warrant from the future Edward VII during his tenure as Prince of Wales in 1868, with Queen Victoria conferring similar recognition in 1878. The tradition has continued unbroken through every subsequent monarch, including the current King.

The company’s European difficulties appear multifaceted. Previous filings indicated that Brexit had generated challenging market conditions across the firearms sector, with Purdey noting in 2023 that Britain’s withdrawal from the European Union had hampered the ability of numerous gunmakers to convert customer enquiries into confirmed orders. The firm declined to provide additional commentary on the latest results when approached.

Regulatory headwinds represent an additional constraint on the business. The European Union implemented a prohibition on lead ammunition usage in and around wetland areas in 2023, whilst the British government unveiled plans this year to ban the sale and use of lead shots by 2029. Environmental concerns underpin these measures, with estimates suggesting that up to 100,000 wildfowl, including ducks and swans, succumb to lead poisoning annually in Britain.

Purdey has responded by adapting its manufacturing processes to accommodate alternative ammunition types. According to filings with Companies House, the company has ensured that all newly produced firearms can accommodate steel and non-toxic ammunition requirements. For the past five years, all manufactured shotguns have been engineered to withstand steel shot. The firm offers retrofitting services for legacy firearms, conducting necessary adjustments and re-proofing to accommodate steel shot upon owner request.

The business operates as a subsidiary of Richemont, the Swiss luxury conglomerate whose portfolio includes Cartier. The acquisition took place in 1994, integrating Purdey into a broader luxury goods empire. Beyond its Audley House headquarters in Mayfair, the company maintains manufacturing facilities at a gun factory in Hammersmith, west London, and operates a shooting school in Pangbourne, Berkshire.

The combination of regulatory transformation, post-Brexit market dynamics, and concentrated geographical weakness presents ongoing challenges for management. The relatively stable revenue performance against rising losses suggests margin compression, likely reflecting the costs associated with product adaptation and potentially unfavourable shifts in product mix or pricing dynamics within remaining markets.