Instore confident despite challenges
INSTORE, which owns the Poundstretcher chain of budget stores, has said it remains confident despite reporting losses of more than £7m in what it said was an “extremely challenging environment.”
The Huddersfield-based group said turnover had increased 6% to £296.8m for the year to March 31 2008 from £280.1m the previous year.
After net exceptional charges of £5.1m during the period the group’s overall loss before tax was £7.4m compared to £12.3m the year before.
Operating loss was £2.3m down from £9.1m the previous year.
These exceptional charges include the acquisition of 33 Ponden Mill for £3.8m just before Christmas and £1.8m in restructuring costs including redundancy payments.
New chief executive Peter Burdon said that the losses should be seen in the context of the continuing change and development within the business over the past year.
His appointment is part of a group restructure which has seen a number of key new appointments and departures.
However the discount chain said that whilst it was disappointing to report a loss the results represented a “significant advance towards profitability”.
In January the group said that it had seen positive sales growth but admitted that its sales had slowed during the crucial Christmas trading period.
Mr Burdon said: “Trading since the beginning of the new financial year has been tough in the face of the challenging UK retail environment and poorer weather than last year, which has affected our sales of gardening and other Spring ranges. However, we remain confident that we have robust plans in place to respond to these challenges.”
