Poor weather and consumer caution left Homebase with heavy losses last year, but the group says it is on track to deliver double-digit profits in 2024. 

Interior of Homebase Harringay store

Homebase has reported heavy losses in the year to January 2023

In its results for the year to January 2023, the home improvement retailer reported an £84.2m loss from a profit of £30m the year before.

Revenue dropped from £788m to £701m during the period, which the retailer described as a “challenging year for Homebase and retail”.

The retailer confirmed to The Times that it had been fined for failing to file its annual accounts on time, which were due in December.

Homebase said the reason for the delay was a “corporate simplification exercise”, which saw it remove eight dormant holding companies from the wider group structure to “improve transparency”. 

Homebase’s full-year 2022 accounts showed an EBITDA loss of £44m, down from a profit of £63.6m. However, Homebase said it was on track to deliver double-digit EBITDA profit in 2024. 

Chief executive Damian McGloughlin said: “We’re encouraged by our 2023 performance, which has been made possible by the hard work from our team and commitment from our suppliers.

“Despite the unpredictable weather and some of the wettest months on record, in 2023 we increased market share in paint and decorating, delivered bumper Christmas sales and launched a new storage range, which is delivering sales growth significantly up year on year.

“As we head into spring and customers look to freshen up their homes and get ready to entertain outdoors, we’re expanding our ranges, introducing new products and improving the experience across our stores and digital channels. 

“While we remain cautious about the economic outlook, we’re looking forward to returning to profitability in 2024.”

The news comes as rumours of a potential sale of Homebase circulate. According to The Times, its owner Hilco Capital has held discussions about the future of the group with a number of interested parties, including The Range and B&M European Value Retail. 

Sources said that Homebase’s brand name, intellectual property and 170-strong store estate across the UK and Ireland could be “broken up and sold off under new owners”.

“Hilco will have extracted the value it wants from Homebase and is now looking to exit,” one anonymous source told The Times.

However, Homebase told Retail Week that there are no active current conversations regarding a sale.