Matalan drives earnings as sales slip

SKELMERSDALE-based discount retailer Matalan has seen third quarter earnings increase 8.6% to £45.3m.

The growth in earnings before interest, tax, depreciation and amortisation (EBITDA) was achieved despite a decline in total revenue.

In the 13 weeks to November 24, total revenue fell 0.4% to £309.5m. Over the five-week Christmas trading period there was a 1.5% dip in revenues.

Chief executive Darren Blackhurst said: “While headline revenues are broadly in line with last year, this should be viewed in the context of the promotional activity that took place last year.

“We have deliberately focused on the quality of our earnings throughout the current quarter and into December, and have delivered a robust improvement in margins.

“Our active customer base is growing, the quality of our offer for customers is improving and we continue to improve our earnings. We have exited the peak trading period with a good stock position and a strong cash balance. The market continues to be challenging and competitive and we therefore remain cautious in our outlook.”