Maplin presses ahead with expansion
ELECTRONICS retailer Maplin is set to open 15 new stores this year after seeing sales fall in 2011.
The chain’s holding company recorded a pre-tax loss of £49.97m, up from £32.71m in 2010, as underlying sales fell from £208.4m to £205m.
Like-for-like sales in stores fell by 5.6% although the company fared better online where the drop was just 2%.
The Rotherham-based firm continued to see a decline in its mail order business where sales fell 21.4% which the company put down to changing consumer habits and the increased coverage of its store network which grew by 13 during the year.
Its latest directors’ report says: “The biggest risk to the business in the foreseeable future remains consumer confidence.
“However the company is extremely well positioned to withstand a continued downturn owing to its high return on sales and excellent cash generation, which enables it to continue investing in the business and growing the store network.”
Net debt at the firm, which was bought by Montagu Private Equity in 2004, grew from £429.6m to £434.6m although the majority relates to loan notes which are not redeemable until 2015.
Nobody was available at Maplin to comment.
