Maplin sees profits rise despite high-street challenges
DESPITE a drop in sales Maplin Electronics saw profits rise and continued its store opening programme during its last financial year.
The Rotherham-based business, which retails electronic and electrical products through retail outlets, internet and mail order, saw pre-tax profits rise from £32m to £35.5m for the period ending December 26, 2009. Turnover nudged up marginally to £203.6m.
Like-for-like sales fell 5% but the firm said this was partly due to very strong growth comparables in 2008.
During the period Maplin opened 12 new stores and re-merchanidsed three outlets.
The firm’s mail order business finished the period with sales 11.6% behind the previous year. However, Maplin said that the change in customer’s buying habits as well as recession hit the division.
It said that the biggest risk to its business was the continued downturn in consumer spending, which would impact on planned sales growth, but that this would be mitigated by its store expansion plan.
Dave Whittle, Maplin’s managing director, said: “During these challenging economic times we have focused our efforts on protecting profits through careful management of our gross margin.
“We have made a conscious decision not to chase unprofitable business to deliver like for like sales growth at the expense of our operating profit. Maplin has remained focused on providing high levels of customer service and value for money product offers to customers. It is our intention to continue our expansion policy with the launch of twelve new stores during 2010.”
