The Original Factory Shop has achieved a 30% surge in EBITDA as outgoing boss Angela Spindler prepares to hand the baton over to former Woolworths boss Tony Page.
The discount general merchandise retailer, which is owned by private equity firm Duke Street, generated EBITDA of approximately £13m.
Turnover jumped 10.4% to £162m in the year to March 31 while like-for-like sales rose 3.7%.
The results represent a return to EBITDA growth for the retailer, which recorded a £3.1m fall to £10.2m last year.
Online sales were particularly strong. They soared 40% after the retailer relaunched its website in January.
Spindler, who will become chief executive of catalogue retailer N Brown on July 1, told Retail Week: “Sales growth has been terrific but the profit number is exceptional. Not many formats could do so well in non-food convenience and certainly not through a low-priced offering and discounted quality brands.”
Spindler said the performance was a result of buying the right stock at the right time.
Over the year, The Original Factory Shop opened 11 stores.
It plans to open about 15 shops a year, a figure that might accelerate in future.
The results come as the retailer moves into a new phase, as Page officially starts on July 1.
Page, who was general merchandise boss at Asda, most recently held the position of interim commercial director at cycling etailer Wiggle. He said he aims to grow the retailer’s “loyal base of middle-aged and over-50s customers”.
Spindler said: “Tony will take on a challenge to keep [the retailer’s strong performance] going. He is a seasoned non-food value retailer and I know he will get it.”
She added one of Page’s priorities will be to lead the next stage of the retailer’s online growth through initiatives including potentially extending the online product offer.
The retailer has also been piloting a Bonus Club loyalty card which it is now rolling out.