Value fashion retailer M&Co has posted its best results in five years, and has made a good start to its new financial year.
The privately-owned Scottish retailer, which trades from 260 branches across the UK and has 25 franchised stores in 10 countries, benefited from investment in technology, store refits and a growing customer demographic.
M&Co posted a 57% rise in EBITDA to £3.4m in the year to February 26, when total sales rose 1.7% and net turnover stood at £163.2m.
Operating profit rose by £3.4m to £4.4m and on an underlying basis put in the strongest showing for five years.
The retailer has a target of 10 store openings per year for the next five years, and will boost its online operations with the launch of concession brands.
M&Co chief executive Andy McGeoch said: “As M&Co’s target customer is a 40-plus year-old shopping for herself and her family, we believe that the business is ideally placed to take advantage of the demographic growth in this market.
“With the resurgence in local shopping our store portfolio, which is largely located in prime positions in market towns, is well situated.
“Web sales continue to grow strongly with the brand offer now reaching a UK and global customer audience outside of our store catchment areas.
“The retailer has a target of 10 store openings per year for the next five years, and will boost its online operations with the launch of concession brands”
“We are developing our ecommerce strategy to complement our store base with a full omnichannel proposition. Our digital transformation over the last few years has seen the launch of several successful new and innovative ventures that continue to greatly contribute to the strong performance of the company as a whole.”
He said that in the current financial year, “first half results show further progress in like-for-like sales, and achievement of targeted profit levels despite increased cost pressures”.
The business continues to invest in “improved technology to drive efficiency and enhance the customer experience.”
A store overhaul programme is underway and so far about 80 stores have been refitted.