The value retailer will accelerate its store refurbishment programme, beginning with more than 100 of its best-performing stores in 2008, following a successful pilot of its model store format in 11 locations.
Chief executive Alistair McGeorge said the refurbished stores, also including 13 “refreshed” shops, were delivering “strong like-for-like sales growth”, led by an expanded product range and clearer visual merchandising.
He said: “Since the end of the period, we have worked hard to broaden our product offer, introducing new ranges and brands such as Soon and Et Vous. All these changes are proving popular.”
Pre-tax profits at the 203-store retailer rose to£28.1 million, but sales were down 2.6 per cent to£1.03 billion. Gross profit remained flat at£114.2 million.
The period includes the retailer’s first two months under private ownership, following its acquisition by founder John Hargreaves for£187 million last December.
McGeorge said the retailer – which earlier this year rebuffed speculation it was heading for a financial crunch and said it had paid back£47 million of debt – was still ahead of schedule on debt repayments.
He added that the retailer’s remaining debt is more than 80 per cent hedged against fluctuations in the rate of lending between banks.
“While last year remained difficult, we are well ahead of delivering our plan,” he said. “Costs and cash flow are under far better control.”
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