Home Bargains bosses see pay and dividends rise as sales and profits grow

Liverpool-based discount retailer, Home Bargains, has seen revenues and profits jump for the year to June 30, 2023, fueling a hike in dividends paid to owners, the Morris family, to £36m.

The group reduced its headcount by more than 1,500 during the reporting period.

In its latest accounts posted at Companies House under the TJ Morris name, the retail group revealed its sales for the year were £3.774bn, up 10.2% from £3.419bn the prior year.

Pre-tax profits were £332.3m, compared with £293.1m in 2022.

Directors were paid a combined total of £15.584m, up from £15.2m in 2022.

The dividend payment of £36m to directors is an increase on the £30.5m dividend paid the previous year.

The directors’ review in the accounts said the increased turnover was due to the opening of more stores, shop re-sites and an increased contribution from the existing portfolio of stores.

At the end of the financial year the business had a total of 594 stores.

The aim is to add more locations and eventually operate between 800 and 1,000 retail sites.

The average number of staff employed during the year was 26,845, a reduction of 1,556 staff from 2022.

Looking ahead, the directors said the business enjoys a cash surplus which it uses to finance its operations through retained profits, meaning it is at negligible risk of any increase in interest rates.

However, it does acknowledge that the business is at risk from climate change.

The report said: “Supply chain disruption caused by climate-related risk is likely to increase the potential supplier risk, including potential for shifts in supply and demand for certain products.

“Climate change is widely recognised as a critical issue by our customers, shareholders, and employees, sot it is important for the goup’s reputation with our stakeholders to address climate-related risks and opportunities.”

It added: “We will continue to develop our reporting in this area so we can more accurately understand and improve our energy and carbon performance.”

This is the first year the group has adopted the Task Force on Climate-related Financial Disclosures guidelines, it revealed.