Maplin focuses on driving growth

ELECTRONICS retailer Maplin is continuing a programme of investment as it focuses on driving growth in the business which has seen sales soar.

Total sales at the South Yorkshire-headquartered business increased from £214m in the prior year to December 2012 to £269m for the 64-week period to March 2014 (the financial statements have been extended due to a change in accounting reference date).

Maplin, which was acquired by private equity firm Rutland Partners for £85m earlier this year, also reported an improvement in like-for-like sales over the past five quarters. Total LFL was slightly down by -0.2% however the last quarter of the period saw positive LFL sales growth of 8.4% and sales for the last 12 months on a LFL basis as at March 2014 increased by 0.7%.

However, the retailer widened pre-tax losses to £178.1m, from a £65.7m loss in the previous year. It reported an operating profit before goodwill amortisation of £14.8m down from £17m in 2012 and EBITDA was £21.1m compared to £21.2m in the previous year.

John Cleland, CEO of Maplin, told TheBusinessDesk.com: “In the latest published accounts Maplin has recorded a strong and consistent sales growth achieving an improved like-for-like sales performance over five quarters. 

“During this time the company opened 15 stores around the UK, developed the stores within its estate and created a new website. Maplin is continuing to work hard with a clear strategy for 2014/2015 to help drive the growth in the business.”

In its results, Maplin, which has 214 stores, said: “These increased sales are as a result of, and are now helping to fund, the ongoing investment that has been seen throughout the business over the last 18 months. This includes 15 new stores and a new web platform as well as significant investment in the existing store network to improve the layout of the stores.”

Maplin said it has invested in a number of areas including staff training and brand marketing. It has also added an information hub into each store to facilitate in cross channel selling.

Maplin added that the business will continue to implement a strategy of significant ongoing investment into the digital channel to enhance the site and the wider ecommerce offer as part of a fully integrated omni-channel proposition. It also said it will continue to review and expand its product range. The group will also consider trialling new format stores after opening its first travel hub format at Glasgow airport.

Cleland added: “The business continues to trade strongly. Going forward, the business will continue to develop its competency in the digital and direct channel to match its in-store excellence.”

Close