CONVENIENCE store operator and retailer Nisa has seen a marked improvement in its fortunes, boosted by two major contract wins, following a restructuring of the business.
It has recently won a £1bn five-year contract with the My Local business, created from the sale of Morrisons’ convenience stores, and a five year, £250m contract extension with Ramsden International.
The company has said it achieved an adjusted EBITDA – a measure of profitability – of £3.3m in the first half of the financial year, and is targeting a full-year EBITDA figure of £7.2m.
“The last financial year was not a good one, but we put in place robust measures to ensure Nisa would not suffer again this year,” said chief executive Nick Read.
“It is pleasing to see the business performing more strongly and I am confident that our end of year target will be achieved.
“The new business we have brought in, combined with the operational efficiencies achieved in the first half, have really boosted Nisa and it stands as a testament to our ability to deliver a first class service, in terms of range, price and distribution, to a wide variety of business types.”
Nisa has also secured an increase and an extension to its present bank facility with Barclays. The deal sees Nisa extend its facility by 24 months while also gaining additional funding to support the My Local supply contract.
Nisa’s chief financial officer Robin Brown added: “After the company’s poor showing last year, the new management team has been keen to drive the business forward into profitable growth and the strength of our financial plan was appreciated by our bank.
“The turnaround we have delivered in the first half of 2015/16 was recognised and the confidence in our business is demonstrated through the increased size of the facility and the length of the extension.”
