Bargain Booze posts £11m profit

OFF-LICENCE chain bargain Booze has managed to increase profits by 4%, despite a near 5% fall in turnover, latest accounts show.

Turnover for the Crewe-based company was £341.7m for the year to the end of April 2008, down by 4.8% on a turnover of £358.9m in 2007. Despite this, pre-tax profit increased by 4.4% to £11.07m from £10.6m in 2007.

The company, which runs a franchise model, employs 235 people  at its head office and distribution centre, generating a wage bill of close to £6m.

The group now has more than 600 stores and well as Bargain Booze, it operates convenience stores Bargain Booze Select Convenience and Thorougoods, as well as non-licenced Thorougoods Select Convenience franchises.

The company is concentrating on developing the convenience store brands.

The directors’ report said the results were broadly in line with expectaions and added: “The company has implemented a strategy that will continue to focus on developing the franchise network.”

Bu accounts for ultimate parent Bargain Booze Holdings Limited, which cover the same period, show it had £70m of borrowings, comprising bank loans of £45m, with £6.7m of that due within two years; and a further £25m loan note.

First founded in 1981, the company was acquired by venture capital firm ECI Partners from food distributor and retailer BWG Group for £63.5m in January 2006.

The company paid a dividend on shares of £7.21, totalling £9m.