BrightHouse has had another strong year of growth as the retailer benefits from low income families seeking alternative credit lines.
Like-for-likes increased 10.7% in the year to March 31, but growth slowed to 7% in the first quarter of its new financial year, which chief executive Leo McKee said was down to customers’ reluctance to trade up. However, he added it is “not a bad performance” and is in line with expectations.
“April and May were pretty positive,” said McKee. “But June has been sluggish.”
Underlying EBITDA grew 16% to £34.1m in the year, while revenue also increased 16% to £197.3m at the 205-store retailer.
The buy-to-let electricals and furniture retailer said bad debt levels increased from 6.8% of the retailer’s revenue last year to 7.7% this year, although McKee said this performance was ahead of the market after the retailer “tightened its lending criteria”.
McKee said consumers are “cautious in the current economic climate” and that its customers will be “affected by cuts in housing benefit and family allowance” the coalition Government has planned.
Brighthouse is continuing to roll out stores, with 30 openings planned this year.